Gold Jewelry Demand Remains Strong

Gold jewelry demand in the first nine months of 2000 slightly outpaced the record level of 1999, the World Gold Council (WGC), London, reported.

Jewelry demand for the nine months was 2,114 tons, 1% above the level of a year ago, according to WGC’s quarterly survey “Gold Demand Trends.” Compared with an exceptionally strong year in 1999 because of Y2K concerns, the demand for gold as an investment was lower. Investment demand during the first nine months of 2000 was 277 tons, down 27% from the previous year, with a sharp fall in sales of new coins in the United States accounting for most of the decline. That brought total demand for the first nine months of 2000 to 2,392 tons, just 3% below the level for the same period last year.

“Jewelry demand remains robust, with year-to-date demand above that for the same stage of last year, when jewelry went on to break all records,” said Haruko Fukuda, WGC chief executive officer.

The report states that there was a strong recovery in jewelry consumption during the third quarter of this year in several countries where demand had been depressed. These markets include Thailand, where consumption rose 61%; Japan, with a gain of 40%; and Turkey, where demand increased 33%.