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

To: Alan Whirlwind who wrote (55214)	6/27/2000 7:39:00 AM
From: Alex	Read Replies (2) \| Respond to of 116753

Hi old timer :).....Producers see global marketing as key for gold PARIS, June 26 (Reuters) - The gold industry needs to embark on a global marketing campaign to ensure steady consumer demand as it continues to consolidate, gold producers said. Gathering for a two-day sector conference, miners and analysts agreed more needed to be done if gold was to compete with diamonds and platinum as a desirable -- and generally more affordable -- product for consumers. "How can we produce something which ultimately needs a consumer and then do nothing to promote the product to that consumer?" Kelvin Williams, executive director of marketing at leading producer Anglogold, told Reuters on the sidelines of the annual Financial Times gold conference. Williams said Anglogold was joining with investment bank CSFB to take the initiative, but that the whole industry needed to contribute to a marketing project to ensure success. "There has been too much emphasis on supply and not enough on the great attributes of gold -- it can effectively sell itself if someone manages the marketing," Williams said. Terry Burgess, chief executive of Australian miner Delta Gold Ltd., said, "The whole industry needs to lead the way. The (industry-funded) World Gold Council (WGC) can certainly be involved, but it should not have to coordinate on its own." He added, "Until now, companies have made gold and sold it off and not gone on to the next stage -- producers now need to get more involved." Period of consolidation Marketing was seen as especially important for gold as the industry consolidated. Earlier this month, North America'S Newmont Mining Corp. and Battle Mountain Gold made a merger pact, which came soon after a deal uniting Canada's Franco Nevada Corp. and South Africa's Goldfields Ltd. The Canada-South Africa tie-up created the world's number three producer, ranking it just behind Newmont -- the second largest globally and the leader in North America -- and then Anglogold. "There will certainly be more consolidation, but it has got to add value. If the quest is just to get bigger market capitalisation then that won't work," said Delta's Burgess. Consolidation built strength in the sector and so boosted the price of gold stocks, long considered part of the so-called old economy and so less favoured. "A combination of consolidation, steady demand and a good marketing campaign can only be a recipe for success," said one analyst. Recent figures from the WGC showed world gold jewellery demand rose seven percent to 701 tonnes in the first quarter of this year compared with the same period in 1999. "That's where we need to focus our marketing -- in jewellery. If we can crack that, then we've done it," said Emilio Camponovo, board member of Finorasa, Italy's leading gold importer. "Jewellery makes up about 85 percent of gold demand so that's what we've got to target," he said. ¸ 2000 Reuters Limited. All rights reserved. mediacentral.com