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In my view, the most powerful argument to justify today's high price of gold is the dramatic emergence of Asia, Latin America, and the Middle East into the global economy.
So, yes, there are solid fundamentals that arguably support today's higher gold price, although it is far more debatable whether and to what extent they will continue to support higher prices in the future.
But, despite gold's heightened allure in the wake of an extraordinary run-up in its price, it remains a very risky bet for most of us.

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