No Shortage of Gold Buyers

Heavy investment-led gold buying was the key factor driving bullion prices to their second-highest level ever last year, according to a new report published Thursday by CPM Group, a New York-based specialty consulting firm. The last time prices were close to 2006's mean level of $607 an ounce was in 1980. At that time the average price hit $612 and gold peaked at $850 on an intraday basis. "Lower sales by central banks and declining mine production aided the increase in prices, but the premier reason for the high gold prices was investment demand," states CPM Group's Gold Yearbook 2007 which was put together by a team of analysts led by company founder Jeff Christian. The good news for the bulls is that historically high levels of gold buying by investors will likely continue through this year, the study concludes.