Investors rush into gold as they realize that decade-long money printing is an irreversible process. It cannot be stopped. In the face of long-term currency debasement, gold is the obvious hedge.
Gold broke its all-time record, reaching 2000 $ an ounce on August 4th, helped by Goldman Sachs’ bullishness. The investment bank, which has recommended gold since March, now has a 2300 target. «Gold is the currency of last resort, particularly in an environment like the current one where governments are debasing their fiat currencies and pushing real interest rates to all-time lows», said a Goldman report. It also stressed that ‘real concerns around the longevity of the U.S. dollar as a reserve currency have started to emerge’ as a result of record US debt levels.