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*** Seven reasons why gold should surge ***


Seven reasons why gold should surge

Commentary: And how to play the move

By Sean Brodrick, Money and Markets
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.

Continued at:

http://www.marketwatch.com/news/story/seven-reasons-why-gold-should/story.aspx?guid=%7B5BDBAEE4%2DC6....