October 5, 2001
Gold Miners to Invest in Marketing
The gold mining industry announced plans this week for a $200 million annual gold marketing initiative aimed at increasing the demand for gold. The initiative will be launched in the spring of 2002, and could increase demand over baseline for gold jewelry by as much as 340-500 tonnes of gold annually by 2006.
The plans call for leveraging the current marketing efforts of the World Gold Council by merging the mining industry effort with the existing advertising resources of WGC, according to a press release from Barrick Gold Corp.
"This sustained and focused commitment would be beyond any marketing effort our industry has undertaken before," says Randall Oliphant, chairman of the Gold Marketing Initiative Steering Committee and president and CEO of Barrick. "What we're really talking about is one coherent marketing campaign with contributions from gold producers World Gold Council members and non-members alike."
The campaign's steering committee is securing the financial resources to launch the initiative. It expects the campaign will build up during 2002 and be fully launched by 2003. By 2004, the plan calls for gold producers to contribute $4 per ounce of gold produced to sustain the $200 million campaign.
The Gold Marketing Initiative will be monitored for success against measurable performance benchmarks, such as retail jewelry sales.
- by Julia M. Duncan