Gold is popping, and is within spitting distance of the totally psychological $1,000 per oz. level. There are competing theories as to why. Some think the move foretells inflation or the collapse of the dollar. Others argue that it’s a hedge against a stock market re-collapse.
One theory being discussed by traders is that money is coming out of certain failed commodity ETFs (like the double-leveraged oil ETF from Powershares that’s shutting down) and being moved into gold ETFs. Whatever it is, the money pouring into gold ETFs is amazing. This chart shows the number of ounces being held by the premier gold ETF in the UK. Not only has it grown rapidly in the last two years, the last few days have seen an amazing spike in interest.
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