By Sean Brodrick, Money and Markets
Last Update: 4:32 PM ET Apr 1, 2007
Editor’s note: Sean Brodrick is a contributing editor to Moneyandmarkets.com
JUPITER, Fla. (M&M) — I believe gold about to surge to $700 … then $800 and potentially higher. Here are seven reasons why …
1. China can’t get enough gold
According to the China Gold Association, China’s gold production hit 19.9 metric tonnes in January, up 25.7% from a year earlier. At this rate, China should produce 260 tonnes this year. And it’s STILL not enough to meet Chinese demand – it falls about 100 tonnes short.
And the gap may be even BIGGER! This is “The Year of the Golden Pig,” in the Asian calendar, and many Chinese buy gold to celebrate. China’s 2006 gold consumption grew by an amazing 17%, and the Shanghai Gold Exchange reports that gold trading volume 72.83% in January.
2. Two India gold ETFs are launching
The first gold ETF in India is Benchmark Mutual Fund’s Gold BeES. It launched on February 15. The second gold ETF in India is rolling out now, launched by UTI Mutual Fund. The new ETF is called, naturally enough, UTI Gold Exchange Traded Fund.
According to Rajesh Bhojani, President of Marketing for UTI Mutual Fund, about 30% of the gold market in India is investors. I wonder what the new gold ETF will do to that percentage?
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http://www.marketwatch.com/news/story/seven-reasons-why-gold-should/story.aspx?guid=%7B5BDBAEE4%2DC634%2D444C%2D92BE%2D347A372194F5%7D&dist=
