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Gold needs image revamp, strong marketing: industry

DUBAI: Gold producers need to be more aggressive and focused in marketing the yellow metal to meet growing competition from other luxury goods and to stimulate demand, gold industry officials and observers said on Sunday.

"I believe there is an appalling lack of commitment to gold on the part of the world's producers, both in terms of building demand and maintaining the price," Wayne Murdy, president of Newmont Mining Corp., told a conference in the regional gold trading hub of Dubai.

Newmont is North America's largest gold producer.

Murdy said jewellery accounted for 75 percent of the total demand for gold, which in many parts of the world, put gold producers in direct competition with luxury goods such as designer clothes, and materials such as diamonds and platinum.

"And, while the producers of these items market them heavily, we have done little to grow the market for gold," he told the London Bullion Market Association meeting.

Timothy Green, a former gold consultant and author of several books on gold and silver, agreed that in order to keep pace with the evergrowing market of luxury goods on offer, gold would have to revamp its image to appeal to consumers.

"The market has to create an aura about gold for the younger generation, so that they buy it as readily as any new fashion item of clothing or shoes," Green said.

Murdy said it was imperative for gold producers to forge new and stronger links between mines and gold consumers in order to aggressively build on our existing market.

And an increase in demand would in turn boost gold prices, analysts said.

"Supply will stay more or less stable, so increasing demand is the way to (increase the gold price)," said Jeffrey Rhodes, general manager of Standard Bank in Dubai.

Gold, which hit a 20-year low of $251.70 last September, last traded at $304.00/5.50 a troy ounce XAU.-Reuters