Gold is being amassed largely on the fears that the global currency system is flawed, and bears also believe American and Chinese economies are headed for another fall. However, there is a deep economic imbalance that is rapidly being righted that can result in a lot of prosperity for all.
"The only thing that's got us up is oil," Frank McGhee, senior precious metals dealer with Integrated Brokerage Services in Chicago told The Wall Street Journal.
In its annual ranking of countries in terms of political risks for mining investment, the mineral industry advisory firm Behre Dolbear, has ranked Australia, Canada, Chile, Brazil and Mexico as the top five nations in which to locate mining projects.
India is hoping to bury the hatchet with its historical rival Pakistan, at least enough for both sides to benefit from a massive iron ore deposit in Afghanistan.
“Sentiment towards gold is as low as it has been for many years, possibly since the rally started. ... For virtually the first time this cycle, buying gold is a contrarian trade.”
