Wow, for the first time ever gold has reached USD $1000 an ounce. Yes, that’s right, all of about 28g. I can remember five years or so ago when in Australia they were closing marginal gold mines and mothballing them because they couldn’t cover their running costs. I seem to remember at the time gold was in the USD $200-300 range. The financial wizards are saying this is for two reasons. Firstly the crap USD and secondly due to the general health of the world wide financial markets. Gold has historically something that people have turned to as hard currency in bad times as its something they can see. Generally now days currency is electronic so hard to see and it fluctuates. I just wish the AUD$ would drop against the GBP£ but as can be seen here it seems unlikely as the Australian economy is too strong at the moment.
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