According to the council's quarterly survey of gold demand trends, together with lower interest rates, the rise in gold demand made purchases of gold more attractive for small investors and investment was 8 percent higher in the fourth quarter of 2001 than a year earlier.

　　Spurred on by concerns over financial stability and imminent reductions in bank deposit insurance, Japan accounted on its own for one fifth of the global total of gold demand, about 21.5 tons,with a 54 percent year-on-year growth. Heavy investment buying in the country has continued into the early weeks of 2002, according to a press release by the council.

　　Overall gold demand in the fourth quarter of 2001 in the markets tracked by the council was 877 tons, 2 percent below the record fourth quarter of 2000.

　　Global jewelry demand was depressed at the beginning of the fourth quarter by the general political uncertainties and the intensification of the global economic slowdown, but recovered towards the end of the quarter as political situation stabilized and consumer confidence returned, the council said.

　　Gold demand in the year as a whole was dominated by the global economic slowdown and by the aftermath of September 11. The year began strongly, recording 6 percent year-on-year growth in the first quarter, but then weakened as economic growth faded.

　　For 2001 gold demand was 3,235 tons, just 2 percent below that of the record year of 2000. Of this, 2,840 tons was accounted for by jewelry spending and 395 tons by investment, the council said.

(Xinhua News Agency February 27, 2002)