Mineweb reported that according to CPM Group, investment demand for gold will continue to fall this year. Specifically, net additions to gold investment holdings are set to drop to 21.4 million ounces, down significantly from the 2013 total of 30.9 million ounces.
As quoted in the market news:
‘The price sensitivity among longer term investors, renewed strength in equity and real estate markets, and weak demand from some major gold consuming nations could deflate the price of gold and drive away shorter term investors,’ CPM advised in its Gold Yearbook 2014, which was released Tuesday afternoon.
Nevertheless, CPM expects that ‘as investors come to feel more confident that the downside for gold is limited they should be expected to return as increased volume buyers of the metal.’
Click here to read the full Mineweb report.
