China has been reducing its investment into US treasuries right from 2008 beginning, and it has been slowly and steadily building up the gold reserves. And that has forced the gold prices to rule at record high in 2008 while all other commodities including crude oil touched multi year lows.

Given the current US turmoil, while China can be expected to invest more money into Gold, even Japan is expected to buy more gold in 2009. So expect Gold to reach record high in 2009.

As on date, India is the largest consumer of Gold with tons and tons of gold imported every year. Indians have the tradition of wearing newly designed gold jewelry on a daily basis, apart from showing it as their status symbol. With the acceleration of economic growth in the last five years, the gold consumption in India has also been growing.