People Buying Gold In Bars, Not Bracelets
People may be selling gold jewelry left and right but they aren't buying too much of it. The 'Gold Yearbook 2009' from CPM Group shows that while gold prices remain high, gold fabrication rates are expected to fall in 2009. Gold is used in jewelry but also for dental, medical, electronics and other uses. The fabrication demand fell 6.6 percent in 2008 and is expected to fall 7.9 percent in 2009. Jewelry demand is expected to drop by 7.1 percent in 2009.
Investment interest in gold remains high with investors. As reported in National Jeweler, investor buying is expected to hit a record high in 2009, 52.3 million ounces versus 43.3 million ounces purchased in 2008.