Gold-Investment Demand in China to Advance 10%, ICBC Says – Bloomberg 06-10-12

Predictions:

Industrial and Commercial Bank of China ‘s Zheng Zhiguang says the financial crisis has evolved into a sovereign crisis so expects gold-investment demand in China to grow more than 10 percent this year as buyers seek a haven from lackluster equity markets and property curbs. Individual, institutional or even government investors should own gold when the value of money is decreasing at a time of possible quantitative easing, excessive money-printing practices, and too many uncertainties. Bullish on gold long-term on China demand –  Chinese investors were only allowed to buy and hold gold recently so have explosive, pent-up demand due to their attachment to gold – expect growth in investment demand to outstrip jewelry sales.

World Gold Council expects China to top India this year as the largest bullion market due to increased incomes and wealth of China’s middle class.

Goldman Sachs on May 9 said gold remains the currency of last resort and expects a rally by year-end.

Read the full article at http://www.bloomberg.com/news/2012-06-10/gold-investment-demand-in-china-to-advance-10-icbc-forecasts.html