Gold passed $500 per ounce
My guess is that the rising trend in gold is due at least in part to the entire world seeing 'inflation' in energy and commodity prices. IMHO as long as the demand for energy and commodities keeps growing (i.e. China, India) this trend cannot turn around, and more investors will put their dollars/yen/yuan into gold to avoid loss in purchasing power of their currency.
An issue getting quite a bit of attention in 'professional' investor circles is missing 'petrodollars'. During the major increase in oil prices circa 1980, the major oil exporters in the middle east were suddenly awash in US dollars received from the sale of oil at high prices. At that time, these 'petrodollars' wound up coming back to the USA in the form of US stock and bond purchases by middle eastern investors. However, THIS time around, the middle east has its own stock and bond markets to invest in, which have skyrocketed over the past few months, but which are becoming 'saturated' with too many 'petrodollars' chasing too few investment options. With a degree of political animosity toward the USA, some middle eastern investors are reluctant to turn right around and reinvest their 'petrodollars' back into the USA. Some middle eastern investors are therefore looking towards another 'secure' option to invest their 'petrodollars' in = gold.
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