Looking at the entire stock market, capitalization of all gold stocks round the world is less than half the value of Microsoft. Investors are realizing the extreme undervaluation of gold and company stocks, which has lagged behind other commodities in the recent commodities boom. Now that global investment focus and interest is picking up on gold safe haven, the flow of money coming into this sector will produce amazing gains. Annual gold production falls short of demand, and demand is greatly outpacing supply, gold can really only go up from here until supply catches up with demand and we go back to equalibrium.. The production trend has been downwards since there has been no new major mines and exploration for over 20 years. Even existing mines can't keep up with demand and building new mines is a very timely and expensive process.

Most physical gold consumption is done in India and China and their demand is increasing with their increase in national wealth. Central banks in several countries have stated their intent to increase their gold holdings instead of selling.