The following astute observation is reported compliments of MyGoldPanning.com.
After a nearly yearlong break, gold prices are headed higher.
What's happening behind the scenes is that China is hurting for cash internally causing a strong down turn in investing in infrastructure which in turn is throwing people out of work.
Europe is now being forced to expel underperforming countries such as Greece and perhaps even Italy. The drama will come to a head this fall.
In addition, more quantative easing in the US is creating uncertainty about inflation and the underlying value of the green back.
All of which is starting a new rally for gold and driving prices higher. Of course the question is how high will gold go?
Well, China, Italy and India are all buying at a frenzied rate and the Central Banks can't seem to get enough yellow metal in their reserves.
All this mean that we should expect a price of $2,000 - $2,200 by December 31, 2012.