Why the price of gold is set to rise

What does the future hold for the yellow metal? Mark O'Byrne looks at what economic, demographic and political changes will mean for the price of gold.

Demographers predict that by mid-century, the number of people age 65 and over will increase from 7% to more than 15% of the world's population. This will be much higher in OECD countries. It is possible this demographic, more wealthy than previous generations, could generate an increased demand for real assets, in particular, for the traditional safe havens of gold and silver.

Meanwhile, the emergence of newly industrialised economies led by the BRIC nations (Brazil, Russia, India and China) is generating new wealth and may see some two billion people move from peasant to middle class. From a current global population of 6.5 billion, United Nations demographers forecast it will reach seven billion by 2013, eight billion by 2028, nine billion by 2054, and 10 billion by 2200. The bulk of this growth will come from Asia led by China, India and the Middle East and is likely to have an immense impact on global precious metals demand.

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