Gold is the New Deustche Mark

"We point you to our piece posted last month here at the Global Macro Monitor,

Gold’s Perfect Storm? Nears All-time Closing High
Posted on July 12, 2011 by macromon
Gold is creeping higher as many believe it is the only place to hide. Cash gold is near its all-time closing high of 1563.20 on April 29th and closing in on its May 2nd intraday high of 1575.10. We find it interesting many want to sell it here just at the time a perfect storm is brewing for the yellow metal.
If the situation in Europe continues to deteriorate, our bet is gold goes parabolic as the ECB will have no choice but to crank up the printing press to backstop the financial system. There is already talk of the ECB buying sovereign bonds. Rather than hanging on to their Euros or buying dollars, gold could and should be the first choice of capital flight from Europe. Gold is extremely difficult to trade as it really has no clear valuation metric and moves, primarily, on the second derivative of the perception of future monetary policy. We may be wrong and remain disciplined.

We’re not taking a victory lap here but think gold is now in the midst of a massive repricing as a legit global currency/store of value. Central banks are buying even at prices north of $1,500 per ounce. These are strong hands and not the flippers that can take it down $200 in a nanosecond..."

at http://www.creditwritedowns.com/2011/08/gold-is-the-new-deustche-mark.html