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To: lorne who wrote (23085)	11/18/1998 10:18:00 AM
From: Alex	Respond to of 116871

Surge in Investment Brings Further Recovery in Gold Demand<Picture> Gold demand in the third quarter of 1998 continued to recover from the poor start to the year, although the economic and currency crisis in Asia kept demand below normal levels in several countries. Total demand in the countries monitored by the World Gold Council was 676 tonnes, just 1% below the record third quarter of 1997. The good third quarter statistics were the result of a steady performance by jewellery and a surge in investment, especially in the USA where coin sales rose to near-record levels. These are the main findings in the latest issue of the World Gold Council's quarterly survey Gold Demand Trends, published today. Commenting on the findings, George Milling-Stanley, Manager of Gold Market Analysis, said: "The most significant development in the third quarter was a continued increase in the demand for gold as an investment. All over the world, investors are looking for ways to preserve their wealth, and increasingly those investors are starting to turn to gold. This growth in investment demand has become increasingly apparent over the past several quarters, and the revival has spread to countries as diverse as Indonesia, Saudi Arabia, Vietnam, the USA, and Japan. "The market is now running into what is traditionally the strongest period of the year for gold demand. The Indian festival and wedding season is well under way, Christmas should provide its usual boost to demand in the Western World, and buying should soon start to pick up among Chinese communities around the world ahead of the Lunar New Year. The outlook is for the recovery to continue over the remainder of the year." Third quarter demand highlights include: •In the developing markets, good growth in Saudi Arabia and Brazil, together with continued recovery in much of Asia, was offset by small declines in India and China because of adverse economic circumstances. Dishoarding in Asia virtually dried up. Overall demand in the developing markets was 6% below last year's record. •In the developed markets, there were strong performances throughout the period in the USA and Europe, while a jump in investment toward the end of the quarter brought good gains in Japan. Overall demand in the developed markets was 16% ahead of the corresponding period of 1997. *** gold.org

To: lorne who wrote (23085)	11/18/1998 10:21:00 AM
From: long-gone	Respond to of 116871

lorne, Some time back, I reported that the new US Dollar coin would be "gold colored" and that I thought this would be a gold price plus. I think that the gold euro coin Could be another + depending on how many will be made, and the % pure. With all the socialists running Europe now, I can not guess which way everything will spin. If Europe is anything like the US , spin may be the right word. rh

To: lorne who wrote (23085)	11/18/1998 11:03:00 AM
From: Alex	Read Replies (4) \| Respond to of 116871

From U.S.A. Gold................ MARKET UPDATE (11/18/98 AM): Gold jumped higher this morning in New York on rising inflation expectations tied to yesterdays rate cut and the European Union's approval of 100 euro gold coin for general circulation in the euro zone. EU parliament's move bolsters gold's use as a form of money in daily transactions and underscores Europe's commitment to gold money. Andy Smith of Mitsui, formerly a gold bear turned bullish in recent months, stated the potential offtake for such a coin would be between 1,080 and 21,600 tons, according to a Reuters report late yesterday. "Can a gold coin yet flip gold market sentiment?" asked Smith. If it encompasses even the low figure mentioned by Smith, it will have a major impact as it would absorb over one half the current annual mine production. Beyond that is the removal of the threat of gold sales and loans. As mentioned here before, it would not be prudent for European central bank (s) to both sell gold in open market and use it as a form of domestic change for obvious reasons -- sales would undermine the value the currency. It is likely that gold lending would also go to the back burner not only for the reason just mentioned but also because of the risks involved in the wake of the Long Term Capital Management fiasco. We would rate this news as the most bullish for gold we have seen in many years. We will see how the market will react to it, but we are off to a good start today. usagold.com