posted on Sep, 21 2007 @ 08:54 AM
The falling US dollar is part of the equation...The major factor is an imbalance in supply Vs demand coming out of Asia..
The Chinese and Indians simply can't get their hands on enough physical gold that they actually can touch, as opposed to gold they "own" held by a
western company in trust...
As long as this situation continues, the price of gold will continue to rise gradually, by peaking, then coming off a bit, then establishing a base,
then rising again...
These trends have repeated over and over the last 5 yrs...
The supply side is probably not going to change a great deal in the next 2.5 yrs, and more and more producers are hedging less of their books these
days in order to maximise the price they get for what they produce...
Peace