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

To: long-gone who wrote (28182)	2/13/1999 12:47:00 PM
From: John Mansfield	Read Replies (1) \| Respond to of 116764

Richard, To put part of your money into gold is not unwise nowadays. The downside is not too steep; upside in a Y2k turmoil might make it a good investment. Also, no worries on banking closures. John

To: long-gone who wrote (28182)	2/13/1999 12:51:00 PM
From: goldsnow	Respond to of 116764

INTERVIEW-Malaysia regaining appetite for gold-WGC 07:46 a.m. Feb 12, 1999 Eastern By Jalil Hamid KUALA LUMPUR, Feb 12 (Reuters) - Asia's currency crisis slashed Malaysia's gold demand by half in 1998 but the World Gold Council said on Friday a recovery could be on the cards. Malaysia's gold use fell to a six-year low of 14.4 tonnes in 1998, down 52.2 percent from 1997's 30.1 tonnes and well below the 1996 peak of 33.6 tonnes, the head of WGC Malaysia, Joan Lye, said. In an interview with Reuters, Lye said consumption rebounded 46 percent in the fourth quarter of 1998 and further growth was expected this quarter. ''The first quarter of this year is fairly positive due to the festive season. I like to see the uptrend to carry on,'' she said. Demand traditionally picks up ahead of Christmas, the Moslem Eid al-Fitr and the Chinese Lunar New Year festivals. This year, the Eid al-Fitr and the Lunar New Year fall in January and February respectively. Malaysia, a key Asian user, is also one of the world's largest gold jewellery makers. It traditionally imports 100 tonnes of gold a year and re-exports 70 tonnes in jewellery. But a sharp currency depreciation and an economic recession, the first in 13 years, took a toll on Malaysia's appetite for gold. Against the U.S. dollar, the ringgit currency is now down some 35 percent in value from its pre-crisis level. Higher gold prices in ringgit terms, rising inflation and reduced purchasing power further dampened gold buying, Lye said. Malaysia's bullion imports came virtually to a standstill last September amid confusion over the imposition of Malaysia's capital controls. Jewellery purchases formed the bulk of Malaysia's gold demand. Malaysia's economy is officially forecast to grow one percent in 1999 year-on-year after contracting by more than six percent in 1998 -- its worst showing since 1985. Lye said Malaysia's gold dishoarding was the lowest among the four Asian countries surveyed by WGC recently. The other three countries were Indonesia, South Korea and Thailand. ''Malaysians have strong sentimental and social attachment to gold (and that) resulted in the lowest rate of dishoarding in the region,'' she said. She said Malaysians chose to pawn rather than sell their jewellery to raise emergency cash. ''But they also indicated that when they dishoarded, they intended to purchase gold again within six months,'' she said. WGC, based in Geneva, is a trade association representing gold producers. ((Kuala Lumpur newsroom, +60 3 275-6846 fax +60 3 232-6752, kuala.lumpur.newsroom+reuters.com)) Copyright 1999 Reuters Limited.