When investors get worried about inflation... they buy gold.
The rush has already started...
In the last 3 months:
An ounce of gold has gone from $780 to $939 (Bloomberg just reported on 2/11 that speculators are betting on $1,000 gold by April 2009)...
GLD -- the ETF that follows the gold price -- is up 22%... the Gold Miners ETF, which tracks gold mining stocks, is up 63%...
And if you've tried to buy any gold coins or bullion in the last few months -- if you can find any -- the premiums have shot up as much as 15-20%... sometimes a lot more. "Large purchases of coins are perhaps the ultimate sign of safe-haven gold buying," said John Reade, a precious-metals strategist at UBS.
What's causing the run-up?
According to the Financial Times, bankers say the move is being driven by the "very rich," who are hoarding the metal in vaults... and by professional money managers...
They're all starting to catch on that what the government is doing to bail out our economy will make the price of gold shoot through the roof.
As a result, the super-wealthy and their money managers are piling into any big gold investment they can find:
