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

To: long-gone who wrote (90968)	11/9/2002 1:06:35 AM
From: long-gone	Respond to of 116837

Gold Demand Trends Issue No. 40 - Sep 2002 NEWS RELEASE - 17 September 2002 Click here to view the pdf version of this press release. Prices rise and uncertain economic prospects hold back growth in gold demand. Overall gold demand for jewellery, retail investment, and industrial and dental uses amounted to 729 tonnes in the second quarter, 14% lower than a year earlier, the World Gold Council said today. While price rises together with political and economic concerns encouraged retail investment purchases in some countries, these same factors had an adverse effect on other forms of demand, the Council said in its quarterly Gold Demand Trends. Offtake for jewellery and industrial uses was lower as gold price rises in many currencies, concern over the fragile world economy, and political worries, especially in the Middle East, combined to sap demand. Purchases of gold for jewellery fell 16% to 581 tonnes from 690 tonnes in the same period in 2001 and demand for industrial uses at 74 tonnes was reduced by 6% from 79 tonnes in second quarter 2001. A large part of the overall decline in jewellery purchases was due to a 37% fall in India, the world’s largest gold consumer. This was mainly due to the rise in the rupee price of gold during the quarter. Indian demand is particularly sensitive to price movements; both trade and consumers hold back from purchasing in periods of price volatility. In countries where the economic situation was improving, jewellery demand was more buoyant. Purchases in Indonesia and Vietnam were respectively 27% and 20% higher than a year earlier. Demand in Turkey, while remaining below the record levels of earlier years, almost doubled from the depressed levels seen in 2001. Industrial demand in all East Asian countries reported was also universally higher than a year earlier, suggesting that recovery in the electronics sector could be under way. Global retail investment demand was also down in comparison to the same quarter of 2001. Political and economic concerns underpinned a strong increase in some countries but the rise in the price of gold also encouraged dishoarding in others. Nevertheless, following a strong first quarter, retail investment during the first six months of the year was still 12% higher than in the first half of 2001. Although overall gold demand was lower in volume terms, the dollar value of purchases was virtually unchanged at $7.3bn. This was a consequence of the rise in the US dollar price of the metal, which averaged $312.67 per oz for the period. That was $45 per oz, or 16.8%, higher than in Q2 2001. % change over year earlier 2000 2001 Q2'01 Q2'02 Q2 Year to date tonnes jewellery 3177.2 3005.8 689.7 580.8 -15.8 -18.3 investment 160.4 353.1 64.3 56.8 -11.7 12.2 total consumer 3337.6 3358.9 754.0 637.6 -15.4 -15.7 industrial 387.3 305.2 79.4 74.4 -6.4 -11.2 dental 68.8 67.8 16.9 17.0 0.4 0.8 total 3793.7 3731.9 850.4 729.0 -14.3 -15.0 Value ($bn) total 34.04 32.53 7.32 7.33 0.1 -3.7 price, $/oz 279.1 271.1 267.7 312.7 16.8 13.4 gold.org