More records for the gold price this week as the futures price reached over $US1150 an ounce.
Of course the rising value of the Australian dollar continues to clip those gains for local investors and companies, but the AMP's chief economist, Dr Shane Oliver reckons the metal's price still has a way to go.
He says that while there is a risk of a short term correction in the gold price, more upside is likely over the medium term. But given gold's highly speculative nature a better approach for investors would be to consider a broad commodity exposure.
While many assets have risen in value this year most are still well below record levels, but gold has surged to a new record high in US dollars and has been rising against most other currencies as well.
One of the most common questions I get from clients is: "Won't the printing of money by central banks, like the Fed, just result in inflation?"
But while it's understandable that many see the surge in the gold price as a forewarning of inflation to come, in reality it's not that simple.
So what is driving the surge in the gold price, what is it telling us and can it continue?
Putting the gold price into a long term perspective
The chart below shows the price of gold since 1900 both in nominal and real terms.
