Merrill Lynch Predicts Gold Price of $725 Due to Chinese Gold Jewellery Consumption
“The Chinese are getting richer, and have very high savings rates,” said Birch. “As they earn more money, they will spend more on things like jewellery.” Birch said.
“Chinese jewellery consumption rose more than 11% to 224.1 tons last year, according to London-based research group GFMS. It may increase to as much as 600 tons within five years", Birch says.
“The question is, where is all that gold going to come from?” said Birch.
Source: Merrill Lynch sees gold price at $725