Cost of gold may increase to 2010 up to $725 per ounce - prognosis

/INTERFAX, New York, July 13, 05/ - Cost of gold may increase to 2010 up to $725 per troy ounce due to high rates of economic growth in China, which may become the biggest world consumer of gold and silver ware in nearest future, informs Bloomberg agency, referring to prognosis of Merrill Lynch & Co. Growth of demand for gold in China became the reason of increase of its price in December to $456.89 per ounce, what is maximal index since January 1980, when gold was traded at the level $725 per ounce. At trades in Asia on Wednesday gold price equaled to $426.45 per ounce. "Now savings level in China is very high, - says representative of Merrill Lynch in London Graham Birch. - The more country's population earns, the more expenditures for gold and silver ware will be". Taking into account present rates of economic growth in China, after several years gold import to this country will reach 293 tons of gold in a year, consider analysts of Merrill Lynch. GDP in China last year grew by 9.5% - to $1.65 bn. 1.3 bn. people live in the country. [2005-07-13]