[Errant]

The current valuation is a psychological value, not a physical value.

The ratio is rapidly changing as more and more uses for gold are being found. It is the number one material of choice for electrical connections and new nano particle uses are on a tear...

Only yesterday I saw a new technique for using gold nano particles in human waste disposable. Who knows what future uses may be.

[Sam Gamgee]

Still industrial demand is a very small part of gold demand. Unlike silver, where industrial demand is much more a factor. Gold's demand is primarily jewelry and investment demand. For me the question is what are the elements of investment demand and are they on the side of the gold bull.

We have QE3 continuation, 4% monetary growth, real price inflation, debt monetization that are all positives. The one future negative might be real interest rates. Right now they are negative, which is good for gold. But will interest rates rise sharply enough to produce a positive real rate of return?