The 40 page report, drawing together analysis from around the world, predicts that gold prices will exceed $1200 an ounce by the second quarter of 2010. This compares with a 2009 average of $972. Gold peaked at a record $1218 in early December but has since fallen back.
"The incentives to invest in gold should therefore be powerful this year. Moreover, we sense that there is a large amount of money poised to enter the gold market in 2010", says the update. This is the second update of the well known GFMS annual Gold Survey, and it contains data for the full year 2009 and forecasts for 2010.
GFMS looks at trends in both supply and demand for gold. Its analysis shows levels and forecasts of mine production from around the world as well as levels of scrap and official sector transactions. On the demand side the figures look at gold as a form of investment, as well as gold for both jewellery and industrial uses.
Report findings for 2009 include:
- Mine production up by 6%
- Jewellery demand down by 23%
- Supply of gold scrap up 27%
- World Investment jumps from 885 tonnes to 1820 tonnes, a year-on-year gain of 105%
- World Investment demand exceeds jewellery demand for first time in 30 years
- South Africa overtaken by Australia as the world's second largest gold producer, after China.