Gold always generates an emotional debate between opposing true believers: people who love gold (a.k.a. gold bugs), and people who deride the yellow metal as a "barbarous relic." But with America's excessive debt and negative real interest rates, gold lovers continue winning the argument.
After Federal Reserve Chairman Ben Bernanke promised Tuesday that interest rates would stay near zero until mid-2013, gold soared yet again as investors raced to the precious metal and gold-mining shares as a haven against inflation and a weakening dollar and as a way to protect their savings.
Continued low rates mean it's still a good environment for more appreciation in gold's price - even after the metal rose to a staggering $1,800 an ounce before dipping a bit at the end of trading Wednesday.