« Did You Know That China Has Diamond Mines? Believe IT!! | Main | The Importance of Appraisals and Insurance: I »
Gold Predicted To Rise To $725.00 an Ounce.
By the year 2010, as China becomes the leading jewelry consumer, Merrill Lynch & Co., predicts gold may increase to around $725 per ounce.
Graham Birch, fund manager for Merrill Lynch, told Bloomberg News that consumers in China are growing their wealth, and that they have high savings rates, which is all-ripe for driving jewelry sales.
In 2004 China's economy grew 9.5 percent to $1.65 trillion, and retail jewelry demand for gold rose 11 percent to 224 tonne, according to GFMS Ltd.
But another analyst didn't agree, Bloomberg reported that Barclays Capital expects gold to drop about 10 percent by year-end 2005. Gold was trading mid-day July 15 at around $420 per ounce.
