Gold purchases rise in first quarter: WGC

JAKARTA (JP): The World Gold Council (WGC) said on Thursday gold purchases by the Indonesian public increased significantly in the first quarter of the year, in line with the recovery in the economy.

The council's country manager for Indonesia Leo Hadi Loe said in a statement Indonesians bought 23 tons of gold in the first quarter of the year, including 17 tons of gold jewelry and six tons of gold bars for investment purposes.

The amount of gold bars purchased by the public in the first quarter of the year was 20 percent higher than the amount bought in the first quarter of last year.

"The increase in the amount of gold bought by the Indonesian public in the first quarter indicates their growing confidence in gold amid the emergence of early signs of economic recovery in the country," Leo said.

He attributed the increase in the public's purchase of gold jewelry to two main festivities in the first quarter, namely the Islamic Idul Fitri festival and the Chinese New Year.

"The gold purchase figure is fantastic, given the fact that the amount of gold sold by the public in the first quarter of last year is higher than the amount of gold they bought."

Leo said he believed gold purchases in the country would steadily increase over the next few years, following recovery of the country's economy.

He said the falling inflation rate and lower bank interest rates were indicators of the country's economic recovery.

Citing the council's report on Gold Demand Trends, Leo said public gold purchases in 27 major countries -- accounting for 80 percent of the world's gold transactions -- increased by 62 percent to 788 tons in the first quarter over the same period last year.

Public gold purchases rose in the United States, China, and Japan, but decreased in India and Saudi Arabia.

Public gold acquisitions also rose in South Korea, Thailand, Vietnam, and Malaysia, but dropped in Singapore. (jsk)