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.