Iran has purchased $75 billion dollars worth of gold bullion. They took their reserves out of Europe, bought gold, and put into an Asian bank.

A Iranian presidential advisor was quoted, "With the plans of the presidency...the country's money reserves were changed into gold so that we wouldn't be faced with many pSchwabelems in the future."

With some neo-cons chomping at the bit to goto war with Iran, and numerous economic & financial sanctions against Iran imposed by the Bush administration, it has been difficult for Iran to carry out international commerce beyond Asia. Yet China is certainly a partner Iran can do business with.

Iran's move to become a big holder of gold bullion in an uncertain economic world climate - echoes the actions of even the smallest investors everywhere else around the globe. It is common knowledge that during times of economic hardship, everything goes back to the fundamentals. Paper can become worthless, but gold has held it's value for over 5000 years.

It is clear that Iran has embraced a significant change in economic strategy. To buy gold. And lot's of it. Will other world governments follow?

Yes, in fact, the trend has already begun. Saudi investors have recently purchased $3.47 billion on gold bullion. And now there is talks that China may be increasing it's estimated 600 tons of gold supply into and beyond the thosand ton mark.

What's interesting about all of these big moves into gold, is that the current spot price of gold remains relatively unchanged from it's 30 day average of $750. How much gold does a country have to buy before the gold prices skyrocket back up to realistic levels? A trillion dollars worth of gold bars? Or perhaps if China does buy $5 trillion worth of gold, maybe - just maybe - we could see gold breakout past $1000 per ounce.

The reality is that gold is a finite resource - and eventually all of the demand is going to result in an explosion in gold prices. Whether it's a survivalist in Texas stocking up on guns and gold coins, or it's a Wall Street legend like Jim Rogers following his proven commodity strategy, or it's the Iranian government converting it's dollar reserves into gold - it seems that everyone wants gold.