Gold Enters Period of Rising Prices as Currencies Depreciate
Source: Mineweb, Lawrence Williams (3/4/10)
". . .gold could well be set for a further rise this year as investor sentiment remains strong."
Negative factors are that gold mining company dehedging will diminish sharply, but to an extent this is offset by the perception that central bank sales will be limited this year with perhaps the IMF's remaining 190+ tons being the only significant sale this year from the official sector—though it is early yet. If the IMF gold is purchased by official entities, then the subsequent boost to the gold price would likely take it back to last year's high point, and probably beyond.
Positive points perhaps outweigh negatives at the moment, though those who follow fundamentals in the sector will point out that the price is being held where it is purely by investment interest. Supply/demand analyses point to gold being in surplus.
As the world's finances remain a mess, it seems likely investor interest will continue as a safeguard against collapse elsewhere.
We are more likely than not entering a period where gold will continue to rise; it may not make you rich, but will protect your wealth from a drastic depreciation in currency and market values.