[Brilliant]

Precious metals have been given a boost as investors look to protect themselves against higher inflation and weakening currencies such as the Japanese yen.

But inflation is still low, and the depreciation of the yen should not impact the value of gold, as denominated in dollars. Personally, I think it's more the case of investors not being satisfied with the meager gains on the stock market, and being afraid to put more money into real estate. Gold is the only thing left, but I predict that gold will ultimately demonstrate that it's not a safe haven either.

[mr_hammer]

Inflation still low, please! I take it you don't have any children in a private school or college, nor have you had to visit the doctor for a serious illness.

Please don't recite to me Alan G's definition of inflation, subtracting fuel and food prices out because of their instability. I can't subtract them from my monthly budget.

Any reason you know of why the Fed stopped reporting the M-3 number?

[Mulder]

Personally, I think it's more the case of investors not being satisfied with the meager gains on the stock market, and being afraid to put more money into real estate

The major fiat currencies are starting to run into problems, which is causing the smart money to move a little into gold. On top of this, we're in a commodities bull market.

The dumb money (Joe Q Citizen) is still thinking about stocks and real estate, as any trip to the finance section of a bookstore will prove

[KamperKen]

"that gold will ultimately demonstrate that it's not a safe haven either."

I agree. The world central banks hold about 1 billion ounces of gold and could collapse the price in an instant should they elect to sell-off a tiny fraction of their reserves.