Gold has risen all seven business days this month. At the session high, the market was up US$35.60, or 7 percent from its price at the end of last month.
Worries about inflation have made their way into the marketplace, and these worries could send the metal considerably higher yet, said Peter Schiff, president of Euro Pacific Capital. In particular, Schiff pointed to increasing money supply from the Federal Reserve and other central banks around the world.
"That's making money less valuable, and you can see the value of money declining relative to gold," he said. "Gold is how you measure paper currency. When gold is rising, it means currencies are losing value and purchasing power."
Due to its monetary use, gold moves on factors other than general supply and demand fundamentals, as is the case with commodities such as oil and soybeans, Schiff added.
"When gold is going up like this, that's telling you something," he said. "It's not just some other metal. Gold is being bought as money."
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