However, the overall demand at 3,281 tn during 2000 was essentially unchanged compared to 1999. In Turkey, the demand rose a massive 49 per cent over 1999, enabling the country to regain its place among the world's top five gold consumers. Records were also set in the Gulf countries, Mexico and Vietnam. Also, of note is the 10th successive annual record for gold jewellery consumption in the US.

Figures for India indicate that overall demand for the year 2000 was 855.2 tn, just two per cent increase compared to 1999. This, WGC said was due to patchy monsoons, lack of weddings and a falling rupee. In particular, gold consumption in Q4 was 232.4 tn, more than the same period in 1999 by 27 per cent. Robust economic growth and an increase in imports from unofficial channels kept demand trends strong. Further, WGC said, jewellery consumption for Q4 worldwide reached 793 tn, 12 per cent higher than the previous year and 5% higher than the previous record in Q3'99. By Q4, there were signs that investment was shaking off the effects of the fallout with demand higher by four per cent than a year earlier for the first time. Demand reached new records in several countries. In India, demand edged above the previous record in 1999, despite a low number of auspicious days in the Hindu calender for weddings and patchy monsoon hitting rural income in some areas.

Quoting WGC chief executive officer Haruko Fukuda on these developments, WGC said in its recent report: ``I am encouraged by the all-time record achieved in the fourth quarter.

Despite the effect of Y2K fallout on investment demand, which depressed the figures for 2000 as a whole, the trend in consumption has been strongly upwards in the last few months. We are determined to maintain this performance and I look forward to seeing good progress in 2001".