Record Gold prices

The precious yellow metal soared again Wednesday, rising above $1,800 an ounce for the first time as investors fled stocks for safer assets. The Dow closed down more than 500 points, erasing Tuesday's gains.

Gold bugs love bad news, and civil war in Libya, Africa's third-largest oil producer, couldn't have come at a better time. After dropping a hundred bucks in January, February's upheavals have pushed gold back within striking distance of nominal all-time highs.

The Dow surged nearly 200 points, while inflation fears propelled gold to another record close. The Institute for Supply Management said its services index rose to 53.2 last month from 51.5 in August. Economists had expected the measure to rise to 52.

Stocks closed ever-so-slightly higher Friday as traders weighed some better-than-expected earnings news and inflation data against slumping consumer sentiment.

Gold prices slipped Wednesday after closing at a record high in the previous session. Prices have risen sharply over the past three weeks as the euro has come under pressure.

The Federal Reserve is far and away the biggest holder of gold reserves in the world, but other large central banks are sitting on considerable amounts of the precious metal as well. From Germany to India, take a look at the top owners of gold reserves.

Gold prices broke above their nominal closing record of $1,245.60 an ounce Thursday on the Comex division of the New York Mercantile Exchange. Gold futures for August delivery, the most heavily traded contract, hit $1,250.30 at one point in early trading.

Thank the Incredible Shrinking Dollar. The Federal Reserve wants a cheap buck to help boost exports and create jobs, but so far it's just made central banks and institutional investors at home and abroad feel pretty stupid holding rapidly depreciating greenbacks. So, they're dumping dollars and hording gold.

Leave it to Switzerland's version of Dr. Doom to make the latest apocalyptic pronouncement on the future of the U.S. dollar -- and the outlook for gold prices. Marc Faber, investment advisor and fund manager to the uber-wealthy, says gold will forever stay above $1,000 an ounce. If you're...