Why The Gold Prices Have Risen?

   Once purchasing of dollars was considered to be a safe investment. Therefore, governments as well as common man used to purchase dollars out of his savings and cosidered himself to be a lucky one.The country that had foreign exchange reserves in dollars would feel proud ( like Pakistan). But the situation is changing due to the weakening economy of the USA and its huge debts, the dollar is losing its value. Resulting which the countries having dollar foreign exchange reserves are worried. These include China ($ 2 trillion and 622 billion), Japan ( $1 trillion and 96 billion), Russia ($ 483 billion), Saudi Arabia ($ 465 billion), Taiwan ($ 387 billion), Brazil ($ 290 billion),  India ($ 284 billion), South Korea ($ 274 billion) and Hongkong ($268).
   When the news of weakening of dollar spread around the world, the economists are suggesting the governments as well as common people that it is possible that dollar may remain simple  piece of a paper, so better to invest the savings  in precious metals like gold and silver.When the demand for gold and silver increased their prices touched the sky. It happened with in 2-3 years.
    Russia has purchased 50 tons more gold, recently, even the international financial institutions like IMF and World Bank are purchasing gold, instead of dollars. They rightly thinking that if USA's economy collapses  it will drown them too. Last year China had $ 3 trillion, but it purchased during 2011 worth $ 400 billion. China , Russia and India are transferring their foreign exchange reserves into other currencies.  China has a problem that USA owes its $ one trillion. So it is taking such financial steps to save its present dollar reserves. Otherwise, if dollar values decreased to its lowest level its dollar reserves will be zero. So , USA is a Titanic that will drown many others if it sank itself. USA has real state crisis too.so in many countries people are investing in property instead of dollars.  China is trying to to have its own currency the status of international currency because if alternate currency come into being USA can be declared as a defaulter state, easily.. At present world is forced to tolerate weaker USA economically..