New York–Consumers’ desire to purchase gold jewelry will remain “weak” in 2009, and the metal’s price again is expected to top $1,000 per ounce, a report released Tuesday detailing the gold market worldwide states.

According to the Gold Yearbook 2009, an annual report released by CPM Group, fabrication demand for gold – which consists mostly of jewelry but also includes electronics, dental, medical and other uses – declined 6.6 percent in 2008, from 82.9 million ounces to 77.4 million ounces.

This year, total demand is forecasted to slip another 7.9 percent, to 71.3 million ounces.

According to the report, consumer spending on discretionary items, such as gold jewelry, will remain weak in 2009, with jewelry demand falling 7.1 percent, from 60.8 million ounces in 2008 to 56.5 million ounces in 2009.

While the metal might not be attracting jewelry store shoppers, investment interest is expected to remain high, the report states.

Due to the inclination to acquire safe haven assets worldwide, investor buying is projected to reach a record 52.3 million ounces this year, up from the 43.3 million ounces purchased in 2008.

The continued volatile and weak financial conditions also are expected to be supportive of strong investment demand this year.

Combined with short term and speculative activity, gold prices are expected to surpass last year’s record intraday high of $1,033.90 reached on March 17, 2008,
the report states.

CPM Group, a precious metals and commodities research, consulting, asset management and investment banking firm, produces annual yearbooks on gold, silver and platinum group metals.

The Silver Yearbook is slated for release on April 28, while the Platinum Group Metals Yearbook is slated to come out on June 30.
For more information, visit CPMGroup.com.

Source: http://www.nationaljewelernetwork.com/njn/content_display/independents/market-developments/e3i52a5818a20ffa024344a8879d5349845

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