Wednesday, 1st March 2006 (3695 views)

Metals analysts on Wall Street report that the largest bull market for gold in history is still going strong.

CPM Group has released its 2006 CPM Gold Yearbook, which reports that gold prices have increased from an average of $429 an ounce during the first half of 2005 to about $550 now.

Gold prices will probably remain strong in the coming months, although may drop back slightly in the future.

The National Jeweler reported CPM head Jeffrey Christian as saying: "We wouldn't be surprised to see gold averaging $500 an ounce this year and $460 an ounce next year."

Gold jewellery is still a must-have item, the report reveals, and record numbers of gold watches have been sold by the Swiss watch industry.

Gold production increased in 2005, spurred on by the high price of the yellow metal, and the demand for fabrication of gold rose by two per cent, from 81 million ounces in 2004 to 82.6 million ounces in 2005.

"Demand was up sharply in electronics, in the use of gold in jewellery with diamonds and coloured gemstones, and jewellery that is bought for investment purposes," the report stated.

 

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