Gold rally continues – Investors seek safe haven in currency devaluation world.

Gold continues a decade long rally and reaches a new peak price as world governments find the need to increase debt and fire up printing presses to deal with balance sheet problems.  It isn’t that gold is necessarily special in any way but investors are seeking a safe haven when currency markets are fluctuating wildly.  Investors are looking for a store of value that simply cannot be printed on the drop of a central banker whim.  The $700 billion TARP for banks?  The $1.25 trillion in mortgage back security buying.  Or what about the recent $1 trillion Euro bailout?  All in all gold is being approached as a serious alternative to other currencies.

The below chart shows gold touching off a new high at $1,232 per ounce USD:

The only thing that would reverse the trend is if global governments get serious and stop printing money.  The likelihood of that doesn’t seem to be in the cards at least for the near future.

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