| |
| SUPPLY
& DEMAND FUNDAMENTALS |
 |
Mine production decreased 4%
in 2004.
|
|
Jewelry fabrication, after sustaining a three-year decline,
rebounded
in 2004 with an increase of 4%.
|
|
Hedge buybacks by producers were a record
424 tonnes in 2004.
|
|
The US gold exchange traded fund (NYSE: GLD), sponsored
by the World
Gold Council and launched in November, attracted over
150 tonnes
of new demand within the first three months of trading.
|
| GOLD:
THE ULTIMATE CURRENCY |
|
The gold price rose 13%, or
$46 per ounce, in 2004 as the dollar continued
to decline against most major currencies.
|
|
The US current account deficit is expected
to surpass $600 billion in 2004
and could reach the $1 trillion mark in 2007 or 2008.(1)
|
|
The Asian central banks funded more than
half of the US current account
deficit. This is unlikely to continue.
|
|
Gold has historically exhibited an inverse
relationship with the US dollar.
|
|
Newmont continues to believe the outlook
for gold is very positive. |
(1) M. Murenbeeld & Associates, Inc.
DOLLAR
WEAKNESS
US DOLLAR INVERSE TO GOLD PRICE
SOURCE: BLOOMBERG AND M. MURENBEELD
& ASSOCIATES, INC.
|
