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

To: Ken Benes who wrote (60379)	10/31/2000 10:03:19 PM
From: Alex	Respond to of 116957

Central Banks to Sell 12 Mln Ounces of Gold in 2001, CPM Says New York, Oct. 31 ( Bloomberg ) -- The world's central banks are expected to sell 12 million ounces of gold from their reserves in 2001, down from 13 million ounces this year, CPM Group said in its annual gold survey. This year's sales were up 59 percent from 8.2 million ounces last year after a group of 15 European central banks announced in September 1999 their intention of limiting bullion sales to 400 million metric tons ( 12.9 million ounces ) a year over the next five years. Sales of bullion by central banks have contributed to a plunge in gold prices close to a 20-year low. ``Central banks have become more transparent in some of their gold activities,'' having laid out their sales plans, according to the report from the New York-based research group, which was sponsored by a group of gold mining and trading companies. Central bank sales still are lower than in 1993 and 1997, when they totaled 22 million and 20 million ounces, respectively, the report said. Gold prices, which rose to a two-year high of $339 an ounce in October 1999 after the central banks' announcement, have fallen 21 percent since then to $266.40 on the New York Mercantile Exchange, close to the 20-year low of $253.20 recorded in July 1999. Gold hasn't benefited from this year's turmoil in equity markets and concern about slowing economic growth, the report said. ``Amid a sudden resurgence of concern over the economic and financial market outlook and several large changes within the gold market itself, gold prices have been steady and quiet, with a slight downward bias,'' the report said. Supply, Demand Total supply of gold, including output from mines and recycled scrap, is expected to rise 0.4 percent to 104.8 million ounces this year and gain another 1.7 percent to 106.5 million in 2001, CPM Group said. Mine output was little changed this year at an estimated 67.3 million ounces and will rise to 68.5 million next year. Total demand for gold is expected to rise this year and next, the report said. Jewelry and industrial use will rise 4.3 percent to 106.1 million ounces this year and reach 108.5 million ounces next year. East Asian fabrication demand could be up as much as 24 percent to 24.73 million ounces this year amid stronger demand in Thailand. Demand in India, the world's biggest consumer, is expected to fall 8.5 percent to 21.77 million ounces this year, while Italian demand falls 7.9 percent to 17.47 million ounces, the report said. Investment demand is expected to total 11.6 million ounces this year and 10 million ounces next year. Oct/31/2000 19:24 ET For more stories from Bloomberg News, click here. ( C ) Copyright 2000 Bloomberg L.P.