The real question is why are all those countries dumping dollars in favor of gold?
Gold peaked over 1200 yesterday, and finished at 1193, up 20% in a couple of months. Those predictions of 2k an oz gold are looking better all the time.
Gold has had an incredible run-up. It could consolidate/correct a bit, but IMHO it is still headed north.
I look at this differently — I look at this as the US$ sliding lower more so than gold rising, because I think that is the specific reason for the rise.
The US$ is considered a toxic asset worldwide ... This was months and months ago, but I read back then that on the black market overseas in many places, they didn’t even want the US$. If that was true then, how much more so it must be now.