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World's Millionaires Grow to 10 Million

By CANDICE CHOI,

Posted: 2008-06-25 14:38:40

NEW YORK (June 24) - Add an extra zero to the ranks of the millionaires club.

The number of people around the world with at least $1 million in assets passed 10 million for the first time last year, according to a new report. And their bank accounts are growing even faster.

The combined wealth of the globe's millionaires grew to nearly $41 trillion last year, an increase of 9 percent from a year before, Merrill Lynch & Co. and consulting firm Capgemini Group said Tuesday.

That means their average wealth was more than $4 million, the highest it's ever been.

"The growth of their wealth is outpacing the growth of their population, and that's a trend that's going to continue in coming years," said Ileana Van Der Linde, a principal with Capgemini.

The ranks of the wealthy are growing fastest in the developing economies of India, China and Brazil. The number of millionaires in India grew by about 23 percent.

The United States still reigns supreme when it comes to fat wallets, though: One in every three millionaires in the world lives in America. Combined, Africa, the Middle East and Latin America account for just one in 10.

All told, there were about 600,000 more millionaires in the world in 2007 than in 2006, for a total of about 10.1 million. That's a 6 percent increase from the previous year.

Ten million may seem like a big number for such an elite club, but it still represents less than one-fifth of 1 percent of the world's 6.7 billion people.

The rarefied group of the superrich - those with at least $30 million in assets - got richer, too. There were 103,000 of them around the world last year, 9 percent more than the year before, and their wealth grew by nearly 15 percent.

The 600,000 new millionaires were unsurprising to Brian Bethune, an economist with Global Insight, who said inflation and the expansion of the world economy accounts for the growth.

Besides, $1 million isn't what it used to be. One million dollars in 1996, the first year the report was issued, would have been worth about $1.3 million last year, Van Der Linde said.

Steady growth powered economies worldwide in the first half of 2007, but more mature markets were hammered in the second half by the U.S. housing and credit crises. Emerging economies were largely unaffected, the report found.

The downturn started catching up with emerging economies in the beginning of 2008, Van Der Linde said.

Already, the report found, the millionaires club wasn't expanding as fast as before. From 2005 to 2006, the group swelled by more than 8 percent. The club has grown every year since the report was started.

Because of the economic slowdown, the wealthy tended to shift their money to safer investments such as gold and other commodities, and away from riskier investments such as hedge funds, the report found.

Cash deposits and fixed-income securities accounted for 44 percent of the assets of the world's millionaires, up from 35 percent in 2006.

The wealth of the world's richest is projected to reach almost $60 trillion by 2012, the report said.

Copyright 2008 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. All active hyperlinks have been inserted by AOL.

2008-06-24 16:11:03

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JDM81270 02:47:50 PM Jul 01 2008

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what do you click on to get a free gas card?

SGRIZZLYBEAR 11:54:34 AM Jun 28 2008

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Free gas card. Isn't that great. Do you know if they will send me one for each car?

m1lkshak3r342 10:18:41 AM Jun 26 2008

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Hey everyone!I have just received my $250 gas card from this awesome site that is giving them away! It's really easy to get your gas card. If gas prices are killing you, then I suggest that you give this site a try!It can be found here: http://gascard.things4free.net <---32r8y9h

LifeZing 03:35:00 AM Jun 26 2008

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WITHOUT THE IDIOTISED CONSUMER...you'd have to print more money than you do. JUST FOR YOURSELVES TO ADD TO THAT WHICH IS PRINTED FOR YOU ALREADY. SICKENING AGAIN.FEDERAL RESERVE? It is a mirage. A falsehood for the press only. THE GOVERNMENT OF THIS country FUNCTIONS ON PRINT ON THEIR DEMAND MONEY. AGAIN: Without the consumer...you will shine out to be the murderer for a buck that you all are. WHOREARRAY FOR HOLLYWOOD!

Wend520 08:52:21 PM Jun 25 2008

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betcha american millionaries are mostly republican.

Mediaterra2 08:18:53 PM Jun 25 2008

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As soon as middle class dissapear, the society in US will be split into 15% rich and 85% lower middle class and poor. This will bring ( should bring) an organized revolt of working people, both white and blue collar, and THEN the main battle of classes will take place. We can all live a good, very good and excellent quality of life - if only the government and said upper class of rich will make sure that the GNP distributed evenly along three classes ( groups). If they won't , then the only solution will be either peaceful or civil war. People will not take it anymore. All we need to do is look at European countries that chosen Social-Democratic or Socialist system, and it's clear that their citizens live a full , interesting , joyful life without high stress level and work-home-work that we have here.. Not even sure if you'll have a job tomorrow, or Social Security when retired.

Eustt 05:43:26 PM Jun 25 2008

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I NEED TO WIN THE LOTTERY....

plzgonow 05:39:16 PM Jun 25 2008

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hell on earth

Gman350z 05:26:26 PM Jun 25 2008

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Our millionares took the middle-class wealth in the US and helped shift it to some of these foreign countries which in turn made these foreigners the new millionares. Once the middle-class tanks the rich will really have to start watching their backs. They have stripped the wealth that our grandfathers worked their butts off to give us after WWII. These guys today spend more time on a golf course than Rockfeller did in his hey day. Semper Fi

KassandraG 05:11:04 PM Jun 25 2008

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It would be nice being wealthy. I could build businesses and hire MANY people for one thing. Then if Boma is president I can be taxed to point I no longer can give to needy and list goes on and on.

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