Nobody knows which direction gold is heading next in short term.
IMO, there is going to be a sharp upswing in the gold price for the next few years. I have a feeling that big bankers are artificially keeping the price of gold down. That is the reason why the prices are not increasing although the demand is at all time high. Also, recoverable gold is about to get exhausted. At the current rate of mine production, we have only 20 more years of recoverable gold remaining in the earth's crust.
Well, yes, but...
Physical is where the biggest price increases will come. Zero Hedge (and others) posted charts showing a 220-some PAPER claims on each ounce of physical gold. At some point, there will be 200 people disappointed that they did not own "their ounce" as the piece of paper they have says they did...
Also, gold has one major peculiarity that no other commodity has: a HUGE stock:flow ratio. Almost all gold produced still exists, is owned by someone. Most gold "sits very still" (that is, it does not move, nor is even traded; it just sits there). This nets out, in the end, of meaning that gold mine closures (and other supply disruptions) matter fairly little.
What will matter re future price of gold is
demand. When paper gold is shown to be a massive ponzi, "paper gold" (COMEX price, GLD value) will go to (or trend to) $0.00 while physical will disappear (at first) and then come out the other side valued into the FIVE FIGURES per ounce.
