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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (50287)	3/13/2000 9:25:00 PM
From: Alex	Respond to of 116790

Economic growth to drive India?s gold demand Suresh Shah MUMBAI 13 MARCH THE outlook for gold in India, the world?s largest single market, is very promising with the economy expected to grow at around 6.5 per cent in real terms in year 2000, says World Gold Council chief executive officer Haruko Fukuda. The strong economic growth, particularly in the rural areas, growing middle class and booming stock markets are some of the factors that are likely to give a further boost to gold demand in India, she told ET on her first visit to this country as the council CEO. ``There have been early signs of brisk buying,?? she said. Gold demand in India for the full year 1999 reached a new high of 838.8 tonnes, a record for the fifth year in succession. This marked a 2.9 per cent growth over the 815 tonnes recorded for 1998. Demand could have gone up further but for the sharp movement in the gold price following the signing of the Washington agreement on gold, which restricted sales out of the official reserves of the world?s largest gold-holding countries. She clarified that the council do not oppose official sector sales and lending of gold per se, for to do so would be to confine gold to the museum, where many of its enemies want to see it. ``No, what we oppose vigorously are the activities of central banks and governments that undermine or damage the positive role of gold.?? Right from the start, the council has been critical of Britain?s gold auctions. The British government argues that in terms of volume related to the size of the market these auctions are inconsequential. ``That is fair when we consider global demand for gold currently exceeding newly-mined supply by more than 1,000 tonnes a year.?? The council, however, has consistently argued that this reasoning entirely misses the key message that is being sent to the market by these auctions. That message is not that `the British government is mobilising some its gold reserves in order to help solve some domestic crisis? but instead it is that the British government is selling some of its gold reserves because it no longer believes in gold as a reserve asset. ``It is this message which has been damaging.?? The Washington agreement of September 1999 clarified the intention of several of the world?s biggest official sector holders of gold. ``Together with the USA, the BIS, the IMF, Japan and Australia, all of whom have stated they have no intention of selling any of their current holdings, the Washington agreement covers almost 90 per cent of gold held in the official sector.?? The agreement has removed, at least for the next five years, much of the scope for market rumours about more official sector sellers emerging, Ms Fukuda added. economictimes.com