Look at it this way. Commodities are at all time highs. The world is “expanding” with globilization. Money is being made by people who have never seen a $100 in their life before let alone thousands. With that money comes the ability to buy items like jewelry, computers, and other non-essential needs (although computers are becoming increasingly essential.)

Oil is rising. Although the bubble may burst, this is highly unlikely considering that the whole world, as mentioned, is expanding and the need for oil in China and India is helping drive costs. If oil goes up, other commodities rise, the need demand for precious metals doesn’t dwindle, why would it not climb?

Inflation, Inflation, Inflation. Inflation is driving up the cost of a lot of goods. Do you really think the price of milk or a candy bar is going back down? Although I realize that these aren’t perfect comparisons you get the idea. The value of a dollar is going down, prices of tangible goods are going up. If dollars are being produced more and more to cover our nation, is the government going to start pulling more twenties out of circulation once the economy recovers? Probably not.

There are probably a bunch more reasons why investing in gold is a good idea, even at this peak. But then again, everyone’s personal finance story is different. So choose where you money goes wisely. Gold may not be the best investment for everyone.

South Africa, the United States, and Australia are the three largest gold-producers countries. For decades,
South Africa has been the largest producer of gold. In 1970, the world owed two-thirds of its gold production to South Africa. In 2006, the gold production of the world was estimated to be 2469 metric tons, with South Africa, the United States, and Australia contributing 11.0%, 10.5%, and 10.2% gold respectively.

South Africa has been the largest producer of gold for more than a century. However, the gold production records last year brought China up to the first place. China has produced 276 metric tons of gold in 2007, thus contributing a significant 11.3% gold to the world’s production. South Africa produced 272 metric tons, followed by the United States with an estimated production of 255 metric tons and Australia with 251 metric tons.

The other gold producing nations apart from these countries are Canada, Peru, Russia, Indonesia, Tanzania, India, and Japan.

South Africa has been considered the country with the largest gold reserves in the world. It is said to have fifty percent of the world’s gold reserves. The gold mines at Boksburg and Carletonville are the biggest mines in the country and the deepest in the world. AngloGold Ashanti Limited and Gold Fields Limited are two of the big mining companies in the country.

Thanks to extensive foreign aid, China has been able to become the largest gold producer even with only seven percent of the world’s gold reserves. China’s CNGGC (China National Gold Group Corporation) is the biggest mining company in the country. The nation’s other mining companies include Zhongji Gold, Fujian Zijin Mining Industry Company, Lingbao Gold Company, and Zhaojin Mining Industry Company.

Most of the United States gold comes from Nevada, a state in the west of the country. The state is known for its open pit mines. The other gold producing states are Colorado, Alaska, Arizona, Michigan, Idaho, Georgia, California, Montana, Virginia, North Carolina, South Carolina, Tennessee, Pennsylvania, and New Mexico. The big mining companies in the country include Newmont Mining Corporation, AngloGold Ashanti, Barrick Goldstrike Mines Inc. Minera, Coeur d’Alene Mines Corporation, Kinross Gold Corporation, and Royal Gold, Inc.

Australia’s share in the world’s gold production started peaking up after the 1980s. The major gold mines in Australia are Super Pit and Sons of Gwalia mines in Western Australia, Cadia and Timbarra mines in New South Wales, Olympic Dam and Challenger mines in South Australia, Lasseter’s mine in central Australia, and Henty Gold Mine in Tasmania. The major gold mining companies in the country are Barrick Gold of Australia Limited and Monarch Gold Mining.

The 2007 gold production statistics estimate that Indonesia contributed 7.0% to the world’s total production of gold, closely followed by Peru with 6.9% and Russia with 6.2%. Canada produced 93 metric tons of gold, contributing 3.8% to the world’s gold. Other countries are estimated to have contributed 32.9% of the world’s gold.