Gold lining for wool

30 May, 2002 07:00 PM
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CIL administrative manager Norman Harvey is hopeful the latest investment in gold will be a pointer to wool prices.

Mr Harvey, trading administration manager for CIL's combing department, has been in the wool industry for almost 40 years.

He has noticed parity between gold and wool. The price of gold peaked at $318 last week.

"I am not an economist, but over the years I have seen wool prices rise when gold prices rise," he said.

"I think investors are keen to return to hard-based commodities.

"We have seen an easing back on demand for wool and it could be considered a boutique industry.

"But there will always be customers for wool."

Mr Harvey did not foresee a major increase in WA wool production.

"While meat and grain prices are strong, there will be little interest from farmers in breeding Merinos principally for wool," he said.

"They are a terrible lot of work and if the fences and the dams are gone it would not be feasible."

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