The spot price of gold reached an all-time high of $1,594.00 per ounce on 14th of July as more countries and individuals turn to gold as an anchor of stability. This as the two major world currencies and the twin pillars of the international monetary system are under threat of collapse.
In Europe the debt crisis has spread to countries that are the third- and fourth-largest economies in the Eurozone, Italy and Spain -- countries potentially too big to save. This development is concurrent with the recent bailouts of Ireland, Greece, and Portugal, nations that are still not out of the woods, as some will (as in the case of Greece) require additional funding, while others such as Ireland are experiencing difficulties in raising money to fund their debt and may also be in line for further support.
In response to the debasement of the US dollar and the potential collapse of the euro, many of the emerging nations of Asia are also operating under a loose monetary scenario. Most now have negative real interest rates, such as China where inflation is running at 6.5% per year yet the one-year deposit rate is just 3.5%. The same is true in India and many other countries including the United States. Thus more citizens, if they can, are turning to gold or tangible property.
http://www.americanthinker.com/2011/07/the_global_de_facto_gold_standard.html
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