Gold's Rise.... Inevitable
Here's a few paragraphs from the most recent Delaire Report.

When investors turn to cash in an attempt to minimise losses in their portfolios, and as strange as it may seem, they still turn to the perceived safety of government bonds and cash. In the short-term cash is a safe-haven asset, but in the longer term, the value will be eroded by inflation and currency debasement. And, when it comes to government bonds, I maintain that there is nothing safe about these debt instruments especially when the governments issuing these bonds are essentially bankrupt. But in addition, the current yields are so low that they barely cover for inflation, or they are so high that they indicate an inherent weakness which suggests that the risk of investing may also be too high. While investors flee the euro and turn to the US dollar, it is not going to be long before their attention turns from the Eurozone back to the USA. But, in addition to these two major global currencies, the Yen, and Sterling are not much better alternatives. In other words the fiat currencies of the world are crumbling and as individuals around the world recognise what is going on and lose confidence in these paper currencies, they will turn to holding real tangible assets, in particular gold and silver.

The fundamentals driving the price of gold have not changed and the main driving force still remains the problems going on in the global monetary system. The size of global debt is simply too large in relationship to the size of the various economies. The only way out at the moment is to print more money. This will debase the value of some currencies, causing other currencies to become overvalued. This is in turn will create havoc in the global currency system, and send prices of most commodities much higher.

As the fate of the European monetary union slides closer to the edge of a massive precipice, investors holding European sovereign debt are going to lose confidence and bail out of their bonds. As they seek safe haven investments, their first choice will no doubt be the US dollar as well as the Swiss franc, but there will be those who understand the value of owning gold as well and they will include it in their portfolios.

While the price of gold continues to consolidate, I believe that this is merely the calm before the storm. I am certain prices are headed much higher, and gold is nowhere close to being in a bubble.