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To: EtTuBrute who wrote (11380)	4/16/1998 1:49:00 PM
From: Grant Movold	Respond to of 22810

Here is a very BULLISH Article on India's growing GOLD demand.... INTERVIEW-Rosy future seen for India gold demand-WGC 02:42 p.m Apr 15, 1998 Eastern By Anshuman Daga BOMBAY, April 15 (Reuters) - India's easing of rules in the gold market, rising personal disposable incomes and low prices have combined to create an upbeat future for gold demand in India, a top official of the World Gold Council (WGC) said on Wednesday. ''We have a growing class of gold consumers in India. One of the effects of liberalisation in the gold sector is that gold is available easily at reasonable prices,'' WGC Regional Chief Executive Rolf W. Schneebeli said. India's middle class, estimated at about 100 million people, has traditionally driven gold demand in the country. ''If you have the largest market in the world roaring at the fastest pace, that should underline that the fundamentals are extremely positive,'' Schneebeli told Reuters in an interview. India strengthened its position as the world's largest gold-consuming country with demand surging 45 percent to an all-time high of 737 tonnes in calendar 1997, WGC data shows. ''A large part of the demand in India is driven by disposable incomes but I think lower prices are not the explanation for every thing,'' Schneebeli said. Indian standard gold 24 carat ended Wednesday at 4,240 rupees ($106.80) per 10 grammes, up from January levels of 3,985 when world prices tumbled to 18-1/2 year lows of around $276 an ounce. London spot gold closed Wednesday at $307.20 an ounce, off from last week's five-month high of $314.40. ''Our research shows that for the the first time, people have spare money. What they do with the money is to buy gold,'' he said. India's main demand is for gold jewellery, given and used at an estimated 10 million weddings, absorbing nearly 300 tonnes of the metal annually, Bombay Bullion Association estimates show. ''Assuming the economic development continues without much changes, I would see a return to a natural annual growth rate -- of about 10 percent as possible,'' Schneebeli said. Based in Dubai, Schneebeli oversees the industry-funded WGC's operations in the Middle East and India. He is in Bombay to release WGC's''Indian Gold Jewellery Design Resource Book 1998-99.'' WGC represents gold miners and monitors gold demand in markets which together represent some 80 percent of global gold demand. The Indian government in October liberalised bullion import rules, authorising three-state-run agencies and eight banks to freely import and sell gold in the domestic market. Since then, the government has added one more nominated agency and bank to the list. Schneebeli welcomed easing bullion rules in India but added that simplification of tax rules at state levels was needed. ''The Indian government has made dramatic changes in the system of how gold is imported, manufactured and exported,'' he said. ''I think even two years ago, nobody in his or her wildest dreams would have anticpated such bold moves. All these changes came about so rapidly,'' he added. ''Right now, we have different tax systems at different states and this leads to tremendous distortions of gold flows. We need uniform and lower taxes.'' Schneebeli continued, ''This would help make gold flows more efficient, faster, cheaper and will ultimately benefit the consumer and also the export industry.'' The gems and jewellery sector has a weightage of about 14 percent in India's total exports. ($1- 39.70 rupees) ^REUTERS@ Copyright 1998 Reuters Limited.