Gold is trading at $1185 per ounce and rising as central banks and hedge funds around the world seems to be in a hurry to buy as much as they can. It might be the beginning of “Great Gold Rush of 2009″.
While people in India and other places are buying gold bars as per their capacity, majority of trading is happening in “paper metals”. Paper metals are any instruments that are not physically a metal but are options, future contracts, exchange traded funds. most popular form of paper metals are metal “accounts” with hedge funds and investment companies that hold Gold or Silver for their clients. 
The outlook is quite scary as it indicates a major change in investor confidence on dollar and other paper currencies. currencies no longer backed by Gold or other precious metals as they used to be few decades earlier.
In my humble opinion, this trend of increase in gold prices and decline in dollar value is indicative of market’s intent to embrace a new global currency fully backed by Gold/silver or other real physical assets.
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