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Ashanti Goldfields Co. (ASL) Message Board

  • jackster_cat jackster_cat Nov 27, 1998 5:32 PM Flag

    World gold producers seek to revive batt

    World gold producers seek to revive battered
    market

    Reuters Story - November 25, 1998 13:00

    By Darren
    Schuettler

    JOHANNESBURG, Nov 25 (Reuters) - The
    world's biggest gold producers are seeking to draw
    up
    a battle plan in early 1999 to revive a bullion
    market battered by speculative trading in the
    past
    year.

    The move follows a private meeting of
    executives from 20 leading gold miners, including
    South
    Africa's AngloGold Ltd and Canada's Barrick Gold Corp , to
    discuss problems facing the industry.

    "We would
    be interested in a great deal more transparency in
    our market," said Kelvin Williams,
    executive
    director of marketing for AngloGold.

    "A lot of the
    sentiment in the gold market has been driven by rumour
    mongering and speculation
    about actions that never
    happened. If there was more transparency we could point to
    them and say
    on what basis are you making these
    rumours?," Williams told Reuters on Wednesday.


    Transparency in derivatives and futures markets was one of
    many issues debated by the gold
    producers at the
    weekend meeting in London.

    The group, which
    included members and non-members of the World Gold
    Council, agreed that a
    committee headed by AngloGold
    chief executive Bobby Godsell would begin work in
    January on
    possible joint initiatives.

    The
    committee will include representatives from key producing
    regions such as Africa, Australia and
    North America. A
    report will be delivered to the group when it meets
    again in late February or
    March.

    Chris
    Thompson, the new chairman of South Africa's Gold Fields
    Ltd , said a key issue is improving
    the industry's
    understanding of the world gold market.

    The industry
    can reliably track its own output and to some extent
    jewellery and industrial use. But
    vastly more gold is
    traded worldwide and producers have little idea of who
    sells or buys it.

    "It (the meeting) was a sort
    of holding up of a mirror. It's obvious that there
    is so much that we don't
    know about the
    industry," Thompson said.

    Global bullion producers
    are nearing the end of a dismal year which saw prices
    slump to record lows
    amid central bank gold sales
    and even more damaging speculation over central bank
    intentions
    toward the precious metal.

    Bullion was trading
    around $296 an ounce on Wednesday with some analysts
    predicting a move
    above $300 an ounce in the first half
    of 1999 when financial turbulence and a weaker U.S.
    dollar
    should spur interest in gold.

    However, it is a
    far cry from the mid-1990s when producers enjoyed
    prices at around $400 an
    ounce.

    "The market
    has been very bearish toward gold despite the fact
    that gold in the physical market has
    performed
    better than any other commodity in the last 10 years,"
    Williams said.

    He said the group agreed to broaden
    and strengthen existing initiatives to boost the
    health of the gold
    market, including expanding the
    role of the World Gold Council, an industry lobby
    group, and other
    agencies

 

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