iran vs us confrontation

Money printing was never at the heart of the 1979-80 spike

Nor is inflation or deflation the core justification for gold investment

The very core is risk

http://www.bloomberg.com/news/2012-01-05/hard-line-u-s-policy-tips-iran-toward-belligerence-vali-nasr.html

Obama faced with a failing economy in an election year might decide to got to war, distracting the electorate and using war powers to invoke greater power over the economy

The spike in gold was in January 1980 in the middle of of full blown confrontation between the US and the Soviets

http://abcnews.go.com/WNT/video?id=4180499

The key issue was the risk of the Russians invading the Persian gulf from Afghanistan

Oil spiked to $39 a barrel (the all time highest price till 2008)

Gold is a store of wealth during high risk time, gold becomes more valuable as risk rises, as we move into some very challenging times over the next 12-36 months gold is likely to react to the massive risk that is now building in the geo political system.