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To: Eashoa' M'sheekha who wrote (47653)	1/29/2000 5:35:00 AM
From: Alex	Respond to of 116925

HK may secure its place as Asia's premier gold centre HONG KONG, Jan 28: Hong Kong could secure its place as Asia's premier gold market under a plan to establish a bonded warehouse for gold, the head of the Chinese Gold and Silver Exchange Society said on Friday, reports Reuters.The plan, which must be approved by Hong Kong's government, could also lead to an expansion of Hong Kong's jewellery manufacturing as businesses located near the warehouse, Raymond Chan, Hong Kong's gold exchange president, said in an interview.The warehouse would be near the new Chek Lap Kok international airport and would be used by gold producers and bullion banks to ship and store gold for later sales to other parts of Asia, Chan said."This will facilitate Hong Kong's becoming a better gold centre," he said. Already one of the world's gold centres after London and New York, Hong Kong faced stiff competition from potential rivals like Sydney, Tokyo and Singapore, Chan said."If we don't improve, neighbouring cities will challenge us," he warned. Establishing the warehouse would allow so-called loco London trading of gold in Hong Kong, with buyers and sellers assured of an accepted, tradable form of gold priced in US dollars per ounce. Chan said businesses could save at least 20 US cents an ounce in gold shipping costs. Currently gold now is shipped from Asia to approved London warehouses and then often shipped back to buyers in other parts of Asia.In addition, new trading opportunities would arise from premiums and discounts based on demand and supply in Asia as well as arbitrage opportunities that would attract more international dealers to Hong Kong, Chan said. Hong Kong's role as an exporter of gold will gain after China's entry into the World Trade Organisation, expected later this year, because the current eight per cent export tariff will be dropped, Chan said.He said he was pushing for Hong Kong government approval for the warehouse. "My timetable is to move as soon as possible," he said.Turning to the world gold price, Chan said he expected it to rise in 2000 compared with last year because of demand that exceeded supply and because speculative selling of gold by hedge funds should decrease.Also, gold producers were more conservative about entering into risky gold derivatives after miners like Ashanti Goldfields Co Ltd incurred steep losses resulting from last year's volatile prices.Chan said he expected gold to trade in a range between US$280 and US$370 this year, with an average price of US$305. Gold averaged US$273.25 in 1999.Spot gold was quoted at US$286.80/287.30 an ounce at 0630 GMT. independent-bangladesh.com