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News Release
30 June 1999
Public Opinion Research Shows Overwhelming
Support for Gold in Europe
and the United States
Majorities Oppose Plans by British and IMF
to Sell Gold Reserves
NEW YORK, June 30 - The British public opposes by a margin of
five to two the government's plan to sell more than half of Britain's
gold reserves, while by a margin of more than two to one, the U.S. public
opposes the Clinton Administration's support for a proposal that the IMF
should sell a portion of its gold reserves, according to public opinion
surveys carried out on behalf of the World Gold Council.
Commenting on the research, George Milling-Stanley, Manager of the Gold
Market Analysis at the WGC, said "In many instances, public policy
seems to be out of step with public opinion."
This unique series of surveys of public opinion in five of the world's
leading economies has revealed that the public is highly supportive of
the role of gold as a reserve asset for governments. Gold plays an important
role in promoting public confidence in national economies and currencies,
and people are very concerned that their governments should maintain or
even increase the level of gold in their reserves.
The research was conducted during 1998 and 1999, in France, Germany,
Italy, the U.K. and the U.S., to measure public attitudes toward gold
reserves. The surveys also researched opinion on several issues of immediate
interest. These included the introduction of the Euro, the new single
European currency; the U.K. Treasury's decision to reduce Britain's gold
reserves to less than half of the current level; and the proposal that
the IMF sell a portion of it gold holdings.
Two of the world's leading opinion research firms, TN-SOFRES in Europe
and Opinion Dynamics Corporation in the U.S., conducted the surveys. They
tested for the first time the assumption that people do not care how much
gold their countries hold in their reserves, or that the governments and
central banks that decide to reduce their gold reserves are acting in
accordance with the wishes of their citizens.
The research shows that on the contrary, the public cares deeply about
gold's role as a monetary asset. In all of the countries surveyed, overwhelming
majorities say that a strong currency is important to a healthy economy,
and their countries' gold reserves are important to the strength of their
currencies. Large majorities want their country either to maintain or
increase the level of gold reserves.
The research results and analysis have been compiled in one volume entitled
"Gold and Public Confidence," published by the World
Gold Council. The data show that the public in Europe and the U.S. are
remarkably consistent in their attitudes toward a wide-ranging group of
topics involving gold reserves, monetary issues and international finance.
The research shows that respondents in France, Germany and Italy believe
the new European Central Bank should hold at least the same proportion
of its reserves in gold as their own central banks. Polls in the U.S.
and U.K. reveal that large majorities believe gold should remain the primary
asset supporting their currencies and an important part of the world monetary
system.
In other highlights:
- 67% of Americans surveyed want gold to be the country's primary reserve
asset.
- The public in all countries surveyed believes that gold reserves are
important to the strength of the currency and economy.
- 85% in France, 67% in Germany and 68% in Italy favour the ECB acquiring
more gold to augment its reserves in support of the euro.
- Majorities in the U.S. and Europe agree that strong gold reserves
provide protection against future shocks.
- Respondents in Europe and the U.S. say that having gold reserves provides
their countries with economic and monetary independence.
- Respondents in all countries say that gold reserves connote "security,
independence, confidence and value"
- Majorities ranging from 56% in Germany to 73% in Italy say they would
be concerned if their country sold its gold reserves in the wake of
European Economic and Monetary Union.
Mr. Milling-Stanley added: "The strength
of the public's support for gold on both sides of the Atlantic and the
fact that people want to maintain or increase their nations' gold reserves,
will come as a surprise - perhaps even a rude awakening - to several governments,
central bankers, and gold market commentators.
"We hope that everyone, especially
those public officials acting on behalf of their citizens, will be sensitive
to this resounding expression of the attitudes and wishes of the people.
Governments that want to sell their gold reserves are out of step with
the wishes of the people who elected them."
Methodology
The survey questions were organized into three broad sections:
1. Attitudes regarding economic situation
2. Attitudes toward the respondent's national gold reserves.
3. Perceptions concerning gold's usefulness and characteristics as a
reserve asset.
In Europe, the survey samples were 1,000
citizens representative of the general population in each country, providing
a margin of error of +/ -2.5%. In the U.S., the sample size was 800 for
a margin of error of +/-3.5%.
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