Global gold demand up 12 per cent in Q1

IN FOCUS/ GOLD

Figures published by the World Gold Council (WGC) revealed that global consumer demand for gold (jewellery and net retail investment) was up 12 per cent in tonnage terms, and by 30 per cent in dollar terms, in the first quarter of 2004, against depressed levels last year.

The Council has indicated that demand for jewellery in the first quarter of the current fiscal will continue to remain robust in key markets against the previous quarter when demand was affected by SARS.

"Provided there is no sudden price increase, consumer demand should be generally higher in tonnage terms than a year earlier. This however, is not expected to be the case in India despite a good May wedding season, because demand the corresponding previous quarter was exceptionally high," said WGC.

WGC also mentioned that initial import numbers for the US suggested that there has been some recovery in demand, whilst the immediate outlook for all the Middle East regions, including Turkey, was for continued good growth off the back of soaring oil prices and strong economies.

WGC indicated that in the last quarter money flowing into gold from consumers was 37 per cent higher up against the previous corresponding period in dollar terms, and 25 per cent higher than in the last quarter of 2000.

"While early indications are positive, it is the World Gold Council's function to play a key role in maintaining momentum, and ensuring that gold jewellery is a desirable and relevant product for women in our key markets. Overall, we anticipate that the results of initiatives with leading retail partners will start to have a positive impact on figures going forward. In addition, our promotional activities in China, which saw the introduction of K-gold in Beijing in the beginning of Q2, and our Italian-designed Gold Expressions range, which has been promoted throughout all of our major markets, will help to build on the early positive results of Q1," said WGC.