Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: lorne who wrote (3393)	11/22/1997 10:28:00 AM
From: Bobby Yellin	Read Replies (2) \| Respond to of 116816

yes yes yes.. the idea that everything is relative and we need some yardstick to judge the relativity..people seem to be getting desensitized to currency failures now..why not if they are followed by bailouts.. I feel like the biggest fool...I never would have thought that gold could get trashed so badly..as an aside..the jewelry I am seeing advertised in the paper has still not come down in price ...wonder if we will start seeing a price dropt and if that would spur an increase in jewelry demand..currently the earrings and necklaces that are machine made look so overpriced when one factors in the price of the metal..wonder why.... so maybe we will have to wait for gold jewelry to bottom? bobby

To: lorne who wrote (3393)	11/22/1997 1:08:00 PM
From: lorne	Read Replies (1) \| Respond to of 116816

BT 22 NOV 1997 S-EA gold demand falls flat on regional turmoil By Neil Behrmann Buying deflates in Q3 after first-half surge; metal used as safe haven in N Asia GOLD demand in South-east Asia has collapsed because of the region's currency and financial crisis. Confirming earlier reports in BT, the World Gold Council estimates that gold demand in South-east Asia and South Korea slumped to 49.9 tonnes in the third quarter compared with 105.7 tonnes in the same period the previous year. In the first quarter of the year, South-east Asian demand totalled an unusually high 156.8 tonnes as consumers bargain-hunted cheap gold in both US dollars and local currencies. They bought a further 106.4 tonnes in the second quarter. Those purchases turned out to be a good currency hedge for buyers because devaluation caused prices in Thai baht to soar by 30 per cent between May and the end of September, by 16 per cent in Malaysian ringgit and by 10 per cent in terms of the Indonesian rupiah. In the same timespan the US dollar gold price fell by 9 per cent. Illustrating the turnaround in consumption terms, Thai holders sold 15 tonnes of gold in the third quarter compared with purchases of 22.5 tonnes in the same period the previous year. Indonesian purchases halved to 15.5 tonnes, while Malaysian demand fell to 4.7 tonnes from 6.9 tonnes. Interestingly, local demand in Singapore rose to 5.2 tonnes, up 8 per cent on the previous year, possibly because gold was used as a hedge against the currency turmoil. But the Singapore market, also a major centre for gold trade in the region, saw imports fall to 78.7 tonnes in the third quarter from 80.5 tonnes in the year-ago quarter. Imports were also sharply lower than second quarter imports of 107.1 tonnes and first quarter returns of 136.9 tonnes. Korean demand, up 6.5 per cent in the third quarter to 32.5 tonnes and Taiwan's, soaring to 32.7 tonnes from 17.5 tonnes, also illustrate that gold was used as a safe haven in the third quarter. Even though the price has tumbled in US dollars since then, it has held up in those currencies because they have been the latest to crack. Imports into Hongkong surged to 76.6 tonnes in July and August, up by 151 per cent on the same months a year ago. Japanese consumption sagged because of the slump in the jewellery industry. London and Swiss bullion dealers have detected flows of gold from Asia and say that present demand remains slow. The big question is whether consumption will improve ahead of Christmas and the Chinese New Year. More news articles