Record Dollar Demand For Gold In 2006

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The 2006 figures, compiled independently for the World Gold Council by GFMS Limited, reveal that identifiable investment demand in 2006 was 7% higher than in 2005 in tonnage terms, (637t vs 596t) and 45% higher in dollar terms, spurred by a 27% year on year tonnage increase in holdings of gold Exchange Traded Funds and similar products.

Consumers and investors pushed demand for gold to a record level of $65.3billion in 2006, according to figures published today by the World Gold Council (WGC), with positive tonnage growth in the investment and industrial segments and double-digit dollar growth in the jewellery sector. The record dollar values for overall demand and jewellery demand occurred despite a fall in supply, reducing the quantity of gold purchased. The 2006 figures, compiled independently for the World Gold Council by GFMS Limited, reveal that identifiable investment demand in 2006 was 7% higher than in 2005 in tonnage terms, (637t vs 596t) and 45% higher in dollar terms, spurred by a 27% year on year tonnage increase in holdings of gold Exchange Traded Funds and similar products. The fourth quarter was particularly strong with a 19% rise in tonnage terms and a 51% increase in dollar terms. Jewellery demand rose 14% in dollar terms in 2006 as a whole, but fell back by 16% in tonnage terms due to a volatile gold price in the first half of the year. In the industrial sector, demand rose by 7% in tonnage terms and 45% in dollar terms to set a new annual record.

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