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To: Frank Pembleton who wrote (93685)	8/14/2001 12:15:21 AM
From: rails99	Read Replies (2) \| Respond to of 95453

Agree. Looks like a little resistance late today. Check out the Gold and Silver thread tonight posts 1835 and up. Talk of TVX MAE ELD FGX GLG FN and GG GG GG! You hear of ITF and AQI? Mentioned by Svenlar but I do not know of the exchanges. Hope you enjoyed today's little uptick. Rails

To: Frank Pembleton who wrote (93685)	8/14/2001 8:27:04 AM
From: Frank Pembleton	Read Replies (2) \| Respond to of 95453

Gold demand drops as economies slow By ALLAN ROBINSON 03:22 GMT-04:00 Tuesday, August 14, 2001 Demand for gold fell 3.4 per cent during the second quarter of 2001 because of the global economic slowdown and financial crises in several countries, the World Gold Council said Monday. Total demand in key markets worldwide fell to 764.2 tonnes, down from 790.8 tonnes a year earlier. The economic slowdown will reduce jewellery demand, and that decline will be aggravated by particular economic problems in some countries, said Jill Leyland, the senior economic adviser to the council. Despite soft demand, the price of gold and the shares of gold mining companies have strengthened in the past few days on speculation that the U.S. dollar will continue to fall. The price of gold rose $1.80 (U.S.) Monday to $275.70 an ounce. On Aug. 8, gold traded at $267.20 an ounce. The Toronto Stock Exchange's gold and precious minerals index rose 2.75 per cent or 130.67 points to 4,883.53 Monday. The index is up 9.2 per cent during the past five trading days. The shares of Barrick Gold Corp. of Toronto increased $1 (Canadian) to $25 on the TSE and the shares of Placer Dome Inc. of Vancouver gained 56 cents to $17.25. The slowdown in demand for gold has extended to Southeast Asia, parts of Europe and Latin America. There was also "exceptionally poor performance" in Turkey and Taiwan, where demand fell 72 and 47 per cent, respectively, Ms. Leyland said. Gold demand in Pakistan fell 19 per cent and 18 per cent in Japan, she said. The second-quarter slump largely offset the 6.2-per-cent rise in demand during the first quarter of 2001. Global demand for gold during the first half of 2001 rose 1.1 per cent or 18.2 tonnes to 1,601 tonnes from a year earlier, according to the Gold Demand Trends publication. The markets surveyed account for about 80 per cent of total demand for gold, the World Gold Council said. The results for the first half of 2001 may have been helped by a 17.4-per-cent or 72.6-tonne increase in demand from India, the world's largest gold consumer. Total demand in India during the period was 490.4 tonnes. The World Gold Council said India's unofficial imports of gold have dropped because import duties have been cut to 250 rupees or $5.33 (U.S.) from 400 rupees or $8.53 for every 10 grams of gold. Ten grams of gold are worth about $88.65. The decrease in duties took effect in late February. The council previously tried to make an estimate of unofficial or smuggled gold into India, Ms. Leyland said. When asked if the council may have underestimated previous unofficial gold imports to India, she said: "We hope not." Demand in India has increased because there are more auspicious days for weddings on the Hindu calendar compared with a year ago, she said. In the United States, jewellery demand remains strong, but the World Gold Council warned that there are "increasing signs of consumer fatigue" as the economy weakens. On the other hand, the council also said that fashion trends have changed, with a move back to gold jewellery from the more expensive platinum variety. Although the jewellery demand for gold is weaker, John Ing, the president of Maison Placements Inc., said a declining U.S. dollar could increase the investment demand for gold. A drop in the greenback would make gold cheaper to buy in other countries, he said. A lower dollar would also ultimately be inflationary in the United States because it would make imports more expensive, Mr. Ing said. Typically, gold rises with inflation. Lower interest rates and stimulative monetary policies in Japan, the United States and Europe will help the price of gold turn higher, said M. Murenbeeld & Associates Inc. of Victoria, the publisher of Gold Monitor, an industry newsletter. Copyright © 2001 The Globe and Mail globeinvestor.com