Gold Prices Will Rise In 2007 Then Decline In 2008: CPM

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According to Platt, the CPM Group report stated that "Demand from investors should remain strong as gold continues to be seen as a currency hedge, an inflation hedge, an alternative investment, a safe haven, a commodity, and form of savings."

The annual average price of gold will increase to $616.62/oz in 2007 from $606.51/oz in 2006 then decline to $573.54/oz in 2008, according to the latest forecast by the CPM Group, the New York-based commodities research and consulting firm.

..."Demand from investors should remain strong as gold continues to be seen as a currency hedge, an inflation hedge, an alternative investment, a safe haven, a commodity, and form of savings," the report noted. Investors will remain more interested in gold and other precious metals for a longer time,even if prices do rise sharply and then fall back once more. The explanation is simple: The risks and concerns that cause investors worldwide to buy gold are not likely to disappear any time soon."

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