Demand drives 1995 world gold sales

Demand drives 1995 world gold sales

SINGAPORE (AFP): Robust demand in Japan, India, Southeast Asia and South Korea boosted world gold sales in the first half of 1995, an industry association said yesterday.

A statement from the regional office here of the Geneva-based World Gold Council noted "exceptionally strong" growth in Indonesia and Malaysia, offsetting a dip in Hong Kong and Singapore.

In Japan, there was "explosive growth" in investment demand and continued popularity of jewelry, pushing first-semester demand to a record 164 tons, 54 percent higher than in the same period last year.

India -- where gold is popular for dowry and investment purposes -- remained by far the world's biggest market. Demand rose there by 21 percent in the first semester to 235 tons. Total 1994 demand was 415 tons.

Demand in China, the fourth biggest market after India, the United States and Japan, was up 13 percent in the first semester to 119 million tons.

Demand also grew in four other Asian countries among the world's top 10 consumers. It was up seven percent in Taiwan, nine percent in Thailand, 19 percent in South Korea and 45 percent in Indonesia in the first semester.

Gold has enjoyed a revival as a portable tangible asset in Japan. Traders there have said that televised images of fires consuming bank notes and securities after the Kobe earthquake in January convinced people of the strength of gold.

The World Gold Council said demand in developing-country markets stood at 879 tons in the first semester of 1995, up 16 percent over the same 1994 period. In developed countries demand was up 21 percent to 452 tons.