CPM Gold Yearbook Forecasts Increased Demand and Mine Production

By Anonymous

GOLD CPM Group released its annual Gold Yearbook on March 11.

The CPM 2008 yearbook contains detailed statistics on the international gold market. It includes analysis of supply and demand trends, bullion and futures market activity, projections for the next year and detailed statistics on mine production, secondary recovery, central banks, fabrication demand, investment demand, prices, futures and options activity and other aspects of these markets.

The major conclusion of the yearbook is, “the price of gold has risen to record levels as of early 2008, as investors worldwide have turned to gold and other commodities as a safe haven in times of sharply heightened concerns about overall economic conditions, potential further volatility in world financial markets and political uncertainties. Investors are buying gold as an inflation hedge, as protection against a falling dollar, as an alternative to stocks and bonds and as a store of value in a world they perceive to have greater risks to their well being than at any time since the early 1980s.”

Gold prices averaged $22.50/g ($700.11/oz)in2007.Thisa 15.6- percent increase from the average for 2006.

CPM noted that the period of prices above $25.72/g ($800/oz) is more sustained, “perhaps because the factors driving gold prices higher are more sustained and prolonged. Indeed, the entire cycle of gold and other commodity prices has been elongated compared with past periods.

CPM Group publishes annual yearbooks that provide extensive data, price, supply and demand projections, current statistics and analysis of market conditions for the gold, silver and platinum group metals sectors.

Copyright Society for Mining, Metallurgy, and Exploration, Inc. Apr 2008

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