Threat of deflation has gold and gold-related Exchange Traded Funds (ETFs) reeling.

After reaching a record $1,033.90 an ounce in New York on March 17, gold has declined 31%, according to The Straits Times. The worst might have yet to appear as bank strategists are predicting that gold may drop to as low as $600 by the end of the year.

As we continue our epic credit crisis, commodities are seen as taboo with cash being the acceptable form of wealth.

In this past decade, gold has risen as much as 220%. Gold commodities were fueled by expanding economies, increasing demand of commodities in emerging markets, and the increasing risk of inflation.

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