Double Trouble Drives Gold to Record Highs

Definitely, the relationship between inflation and gold is causing more investors to buy gold as protection against loss of buying power.One could make the argument that fear of inflation was the main driver of gold prices to record highs last December.

Now, another fear is gripping the markets as gold threatens to blaze a new trail higher on the global gold charts.Fear that the Eropean contagion will spread and further devalue the Euro, the Pound and other European currencies is setting in.

As reported today, gold has hit record highs against the Euro, Pound and Swiss Franc.Per this recent report, OECD (Organization for Economic Cooperation Development) countries cannot afford to bail out Greece, Spain, Portugal, Italy, Ireland or other debt ridden countries.

That spells double trouble for world economies giving gold a "twofer" - two ways to win.If inflation doesn't get you, debt will.I don't say this to scare you, I say this to motivate you to take some action that may help you preserve buying power and wealth.

We have to pull our heads out of the sand and see that the real world debt situation is unfolding every day.