Demands for Gold Hit Record high of 65 Bln USD In 2006

According to the latest statistics released by the World Gold Council on March 7, consumers and investors’ demands for gold reached an all-time high of 65.3 billion USD in 2006 while confirmed gold for investment purpose amounted to 637 tons, a 7% increase over the previous year.

The report indicated that during the first month of 2007, most jewelry markets enjoyed a prosperous business, which kicked off a great start to the year and revealed that demand in jewelry still high in major markets. Despite the possibility that another large price fluctuation could hold back consumers from purchasing jewelry, it is believed that during the first six months of 2007, demand in jewelry and gold for investment purpose will still be high strong.

In 2006, gold was in short supply in the world market, only 3,451 tons, a 13% decline from the year 2005. Meanwhile, Central Bank’s gold sales were only 319 tons, less than half of the 659 tons in 2005. During the second year (September 27, 2005-September 26, 2006),of the Central Bank Gold Agreement (CBGA), only 395.75 tons of gold were sold, 100 tons less than the projected target of 500 tons.