Why Is Gold At A $1000/Oz?
![[St Gaudens Double Eagle 1 Oz Gold Coin]](http://livingoffdividends.com/wp-content/uploads/2009/09/St-gaudens-gold-double-eagle-bullion-1oz-coin-300x300.jpg "St-gaudens-gold-double-eagle-bullion-1oz-coin")
St Gaudens Double Eagle 1 Oz Gold Coin
Today Gold hit an intraday price of $1005/ounce. While not a record, it’s definitely a historical moment, with this event occurring for only the sixth time in history.
We can only speculate as to why the run up to a $1000 so quick but some of the likely reasons are:
- The continued monetization of US debt and resulting devaluation of the dollar
- The ability for 1/6th of the world’s population (the Chinese) to now buy gold
- The Indian Wedding season is about to begin soon and this is when Indian’s start buying gold jewelery
- The Chinese government has been buying gold on the sly. Well maybe not so secretly. They even encouraging their citizens to buy silver and gold
- The Chinese government just agreed to buy $50 Billion of IMF Bonds denominated in SDR (Special Drawing Rights), a mixture of various currencies, which might be a signal that the US Dollar is losing its status as the world’s reserve currency
The only question is whether this rally can last. In the long term, the answer seems obvious, but the short term is anyone’s guess. However, I think $1000 gold is here to stay.
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