Jewelry Leads Surge in Gold Demand

May 25, 1999

Jewelry Leads Surge in Gold Demand

Bolstered by a 75% increase in worldwide demand for gold jewelry, overall gold demand in the first quarter of 1999 was 62% higher than the same period in 1998, according to the World Gold Council.

Gold demand for investment purposes also grew during the first quarter, up 20% over the first quarter of last year.

Good growth in gold demand in the U.S., China, Japan, South Korea and other Southeast Asian countries compensated for reduced gold use in India, the Middle East and Europe.

First quarter demand in the countries monitored by the World Gold Council was 788 tons, slightly lower than the record for the first quarter set in 1997 and 2% below the all-time record, which was set set during the fourth quarter of 1998. The 27 countries monitored by the WGC account for approximately 80% of global gold demand.

For details, contact WGC, New York, NY; (212) 317-3848, www.gold.org.

- by Michael Thompson