Gold rally taking us to new highs

Several months ago we alluded to the current gold recovery that we are seeing. We are looking for gold to challenge its historic high set back in August 2011 of around $1850. We believe that this 'flag structure' is about to see gold rise $600/oz above this previous high, so we are looking for an ultimate price for gold of $2450/oz in the coming year or two.
A lot of rationalisations will be made to justify this price movement, as well as rationalisations to reject it. The most common arguments are:
1. Low mine output - annual mine production is just a small fraction of the amount of gold in existence. Ultimately it is only speculative demand which drives gold prices, relative to supply of course.
2. War in Iran - Really it is only the uncertainty over monetary unit values which drives the demand for gold.    The prospect of war in Iran is only significant if financing war is considered to be a significant cost on society.
3. Interest rates - The low return on bonds and equities is a compelling reason to hold gold; and this is the state of the current market.

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Author Andrew Sheldon| Applied Critical Thinking | www.SheldonThinks.com