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Paul Noronha

Sounding upbeat: Mr Pierre Lassonde, Chairman, World Gold Council (left), with Mr Gregory Wilkins, who is set to take over as Chairman of the council, and Mr James Burton, CEO of the council, addressing the press in Mumbai on Tuesday. –

Our Bureau

Mumbai, March 11 The World Gold Council (WGC), an association supported by some of the biggest mining companies, plans to cross-list its New York-listed gold exchange traded fund (ETF) StreetTracks gold shares in Japan and Hong Kong in the next two quarters.

“We are quite confident of meeting the deadline to list StreetTracks in the Hong Kong and Tokyo stock exchanges. China can access the ETF through Hong Kong,” said Mr James Burton, CEO, WGC.

Through gold ETF, an investor can own gold in the demat form, thereby eliminating the cost and risk associated with physical gold investments. However, the mutual fund that sponsors the ETF has to hold gold in physical form, equivalent to amount it collects from the investor.

Ruling out any immediate plans to launch ETF in India, Mr Burton said: “India is a marvellous gold market, but it is in the evolution mode as far as gold ETF is concerned.”

On volatility in gold prices, Mr Burton said “The US economy is going through one of its difficult times. Dollar has taken a hit against almost all currencies. In our view the volatility in prices will remain.”

Mr Greg Wilkins, President and CEO of Barrick Gold Corporation who has been appointed new Chairman of WGC, said: “Gold production has fallen 7 per cent last year. Cost of production has gone up for the mining industry. Attempts to modernise production facility has slowed down, stuck due to high cost of funds.”

WGC plans promotional schemes to revive the jewellery demand in India. The gold jewellery demand in the third quarter of the financial year 2008 dropped 64 per cent to 83.9 tonnes. Gold demand, the most price-sensitive market, was affected by higher volatility in the prices of the yellow metal.

A combination of record high prices and extreme volatility is a deterrent to jewellery-buying for both the traders and consumers.

More Stories on : Gold & Silver | Commodity Exchanges

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