It's all the US citizens who are finally realizing that the state of the US Dollar is really precarious. Gold is real money. Dollars are whatever the government says they are.

As economist Milton Friedman said, "inflation is always and everywhere a monetary phenomenon." Price inflation is the result of monetary inflation, and always lags. So even though we don't see prices skyrocketing now as we did in the 1970's, they will eventually. Gold will keep its value as real money and it will take lots more "dollars" to buy it when this happens.

The charts indicate we may be at a short term high around $1325, but fundamentals say it can go as high as it has to as the dollar continues to be debased. My guess is there will be some type of government action when gold prices get to around $2000. We may be asked to surrender our gold for patriotic reasons, the futures markets may be closed, or someother drastic action may be taken to give us a few more years.

The USA still has by far the largest holding of gold reserves of all the nations. But which country is now producing the most gold?...... China!