There are no good investment alternatives at this time. The central banks of the world seem to be determined to make their respective currencies worth less and less. Investors are not paid for that risk.
Gold just keeps going up and there is no speculative fervor evident in that move.
Stocks of gold miners have a tendency to move up before the price of the metal itself does. That usual observation is likely caused by investors who go for the leverage in the miners, before pushing the price of gold itself.
This time though, gold has just been quietly pushing higher and higher while the miners have not gained since 2004, when gold was trading at $400 an ounce.
It appears that the cost of mining the metal kept well pace with the price of gold itself. As a result, gold production has dropped from 2620 tons in 2001 to only 2480 tons in 2009. This is worth repeating: As the price of gold rose from $300 in 2001 to $1300 now, the production has actually declined.
Gold remains in a very solid, long term uptrend. A trend like this is very difficult to reverse and it usually only happens after the price goes parabolic.
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