Gold’s strong performance over the last two years must be seen as an acceleration in the deleveraging of the global financial system. After many decades of inordinate credit creation—leading to excessive debt levels, asset bubbles, and too much monetary interdependence between nations—the financial system has started to heal itself through a rising price of gold.
A wise analysis. Ten years ago I told friends to buy some gold. They laughed. Today they're buying each month from Costco at a much higher price.