Gold Will Benefit From China's Growth Spurt

Urbanisation is taking place on a massive scale in China. This will have huge implications for the commmodities and energy markets, and the price of gold.

Those who think the China story and its demand for commodities and energy is not important should, in order to gain a grasp of the scale of what is happening in China, ponder on recent words from the country's government. They said that between now and 2020, somewhere between 300m and 500m people will move from rural areas to cities.

Based on that simple statement, it can be calculated that the scale of new urbanisation required is the equivalent each year of two new cities the size of either London or New York. You might want to read that again. For the next 15 years China will need to build the equivalent of two New Yorks each year.

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