CPM Group, the precious metals and commodities consultant, in its recently released 2007 Gold Yearbook, mentioned that gold prices will average an all-time high of $645 per ounce in 2007, a year-on-year increase of 6.4 per cent. %% The previous record high of $612 an ounce was set in 1980. So far this year, gold has averaged $650 an ounce as of March 9th. %% Jeffrey Christian, CPM's managing director, said, “One of the things we've seen in the last six years in the gold market is the tremendous amount of interest in gold as an investment product, which has helped push the price higher. And that probably will continue this year.” %% He said that investors were seeking refuge in gold due to the falling US dollar rate and interest-rate uncertainty. Christian added that the prevalent high price levels and the targeting of stop-loss sell orders when prices decline were helping to maintain pressure on the precious metal. %% In 2007, investors are projected to add 39.7 million ounces of gold to their holdings on a net worldwide basis, CPM stated. Gold supply in 2007 is expected to increase by 4.4 per cent to 110.3 million ounces, the consultant said. %% Gold used in jewellery fabrication is projected to rise 9.1 per cent to 69.1 million ounces in 2007 as consumers adjust to higher gold prices, CPM forecasted. Last year, the use of gold in jewellery fell by 13.3 per cent to 63.3 million ounces, mainly due to its price volatility. Total fabrication demand, including industrial uses, could increase by 8.2 per cent to 79.6 million ounces. %% CPM explained that gold jewellery is competing against “a more diverse range of luxury or discretionary purchases… encompassing home electronics, automobiles, watches, and handheld electronic devices, and clothes.” Gold jewellery is also losing out to another rising investment trend of buying gold bullion, coins, and medallions, it added.