World's gold supply will rise this year and next : CPM
Platt's Metals Week, 6 Nov 2000, p 6
CPM Group's Gold Survey 2000 outlines some positive expectations for gold over the next two years. It is expected that the world's gold supply will increase in 2000 and 2001. According to the report, gold supply including mine production, refined scrap and bullion sold by governments, will increase 0.4% to 104.4 million. oz in 2000, and by 1.7% to 106.5 million oz in 2001. Although mine output is set to decline to 67.3 million. oz in 2000, secondary production will rise 7.5% to 21.5 million oz, followed by a 7% increase to 23 million. oz in 2001. The report indicates that both industrial and jewellery demand will rise in 2001. Despite this demand, gold prices still remain within the $270-$290/oz range. The report attributes this to low level of investment demand for gold and continued short selling by technically oriented speculative traders, brokerage companies and commodities futures firms. The report also outlines three scenarios for gold price outlook: an increase in investment demand that supply will be unable to meet, the stabilisation of the gold price at present levels, or the reduction in the size of the gold markets. CPM still believes that gold is a solid investment. |
