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Future Growth in Jewelry Consumption and Uncertainty in Conventional Investments

Bull investors see gold prices as “bright even if fears (of economic woes) subside” due to the fact that income per person in China and India, the biggest market for jewelry, is continuing to increase. Bull investors’ appetite for gold also arises partly from the uncertain returns from more conventional investments such as stocks and bonds, as well as, the possibility of high inflation.

Sources

The Economist, July 10th-16th 2010, Store of Value, pg66-68

http://geology.com/minerals/gold/uses-of-gold.shtml"Future Growth in Jewelry Consumption" is a difficult qualitative factor to defend, so competing institutions will have an easy time overcoming it.