NEW YORK, April 29 (Reuters) - The sharp rise in gold prices in 2002 boosted world investment demand to a 35-year high, but gold's greater value last year reduced fabrication demand, precious metals research firm CPM Group said Tuesday.
In its Gold Survey 2003, CPM reported that investors bought 26.9 million ounces of gold bullion during 2002. That was the most in any year since 1967, more than doubling the 10 million ounces purchased on a net basis the year before.
But the use of gold in jewelry, electronics and other fabricated products fell 11.2 percent to 91.5 million ounces last year, its biggest decline since the yellow metal rose to $825 an ounce in 1980, as investors bumped consumers out of the market, CPM said.
CPM said mine production of gold in 2002 fell 5.5 percent to about 63.1 million ounces. The research firm projected 2003 mine output would be 61.7 million ounces, off 2.2 percent.
Total gold supply rose 2.2 percent in 2002 to 106.1 million ounces, CPM said. It forecast 2003 total gold supply at 101.2 million ounces, down 4.6 percent.