“Investors are increasingly looking to gold for wealth protection,” Shishmanian said. “The ETF market has been explosive and the intermediate market is on the cusp of growing very rapidly as major pension funds and institutional investors begin to hold gold long-term,”he said....He also mentioned higher jewelry demand, presumably from global recovery.
Demand for gold jewelery, corns and bars as a savings method would rise in rural areas of India and China, Shishmanian said. The possible sale of gold reserves by the International Monetary Fund was already absorbed by the market, he said.
That puts a question mark on the $800 figure, to which gold would supposedly fall should
investment demand drain. It seems to be based on a currently depressed jewelry market, which isn't depressed solely because gold's up.