The Chinese are saving their funds - in gold!

Agora Financial in their 5 Minute Forecast back on Friday April 9th pointed out this:

"The World Gold Council predicts gold consumption in China will double in the next decade. Jewelry demand, investment demand, even industrial demand… they all factor in.

"This forecast seems reasonable," says Frank Holmes, "and it lines up with what I've long been saying about the profound evolution in China's economy -- domestic consumption is replacing exports as the growth engine as more poor Chinese move up into the middle class and from there into the ranks of the wealthy.

"China has a centuries-long cultural affinity for gold, so it makes sense that more middle class and wealthy would mean more gold sales.

AWGC gold chart shows how investment demand for gold has rocketed up from next to nothing in 2001 to 80 tonnes (2.6 million troy ounces) last year, with the sharpest upswing coming after trading rules were liberalized in mid-2007.

"Over the same period (2001 through mid 2007), China's GDP roughly tripled. The Chinese are famous for their high savings rate, and the chart shows how important gold has become as a store of their growing wealth."

Others who look for $1500 gold even $2000 gold, point to this growing Chinese demand saying this alone could bring us these higher gold prices.

More information can be found at the www.gold.org/. Of course, more information about gold supply and demand can be found on www.learcapital.com/at Lear Capital. Happy investing!