The reason the gold price is going up is because the US has no choice but to print money to deflate in real terms their foreign debt, extract revenge on the Chinese for keeping the yuan artificially low, and to jump start the US economy.
The investors (including sovereign wealth funds and hedge funds) buying gold are doing so because they know that QE3 (and QE4 through QE10) will cause a run in the gold price well north of US $2500 an ounce over the next 24 months.
There are big potential returns from quality up and coming asx goldies like TRY, CVY and RED in this scenario.
