Gold Price Jumped 29% in 2010

The
gold price rose for the 10th consecutive year in 2010, according to the World
Gold Council.

Gold hit $1,405.50 an ounce by the end of December on the London PM fix, a 29
percent increase from 2009’s levels, the WGC said.
 
The group, which on Jan. 26 released its Gold Investment Digest, said that last
year’s price performance was driven by increased investment activity in China
and a rebound of jewelry consumption in India, the world’s largest gold market.
  
Globally, investors remained concerned about the macroeconomic environment and
turned to gold to hedge against weakness in the U.S. dollar and rising inflation
in many economies.

During the first nine months of 2010, global jewelry demand totaled 1,468 tons,
an 18 percent jump from the same period in 2009.   

“It is significant that consumers increased their gold jewelry spending during
the first nine months of last year, despite the rising price of gold,” said
Juan Carlos Artigas, investment research manager for the World Gold Council, in
a statement.
 
The full Gold Investment Digest report and video can be downloaded here.