- Blah blah fiat blah blah Zimbabwe blah blah gold standard blah blah Ron Paul;
- Blah blah monetary policy blah blah M3 expansion blah blah stealth devaluation;
- Blah blah societal collapse blah blah smoking ruins blah blah Mad Max;
- It's a secular trend that's all about the developing world.
Now go read the Wikipedia article on Gold, esp. the section on consumption.
Can't read? Okay, take a seat... are you sitting comfortably? Then we'll begin....
50% of yearly gold consumption goes into jewelry. In 2010, over half of jewelry consumption was driven by China and India. (Incidentally - go fuck yourself if you're an "analyst" and you didn't notice gold's drop happened at the same time as the Rupee became unstable, instead blaming it on some unseen shadowy elite or something.)
Other significant consumers include Turkey, Saudi Arabia, the UAE, Egypt (oops) and Indonesia.
Then 40% goes to investment demand. Betcha most of that is in India, China, Turkey, UAE, Saudi Arabia etc....