The giant money-printing programme that has been launched by America to keep the economy from cratering has led to fears that, sooner or later, the dollar will devalue.

For rival governments that once would have held their reserves in dollars - for decades the world's chosen reserve currency - gold looks a better bet.

Natalie Dempster, head of government affairs at the World Gold Council, said: "In the 20 years to 2010 central banks were [selling] 400 to 500 tons of gold into the market every year.

"In 2010 they just barely turned net buyers, and in 2011, they took up just short of 500 tons. That is a huge shift."

It is the emerging countries, from China and Turkey to Kazakhstan and South Korea, that are making the difference. "They are building up their buffers to deal with crisis," Dempster said. "Countries that have been forced to go to the International Monetary Fund don't want to have to go back again."

Consider China. It holds less than 2% of its reserves in gold. America's hoard is 76%. Last year, however, Beijing passed India to become the largest buyer, although it is also the world's top producer.

Dave Govett, head of precious metals at Marex Spectron, the commodities broker, said: "If China decided to take its reserve levels to 10% or even 20%, the effect would be phenomenal. It would be more than the market could handle. So they are buying gently, building up bit by bit."

David Fuller's view Is the word fear being overused these days? I suspect so, at least in terms of major economic developments, although one has seldom had to look far for problems or concerns. Whether justified or imagined, they have often been part of everyday life, since the earliest days of our species.

As for gold over the last ten years, it has mainly risen against devaluing paper currencies. In fact, adjusted for US CPI, gold is still below its 1980 peak. When I look at this chart, I am very glad that we have precious metals as hard money assets.

Meanwhile, gold is in the 16th month of its latest and lengthy medium-term reaction and consolidation phase, following the accelerated peak in September 2011. Opinions on this market vary because there has been plenty of two-way traffic.

From the 2011 peak and through May 2001, gold (10-year semi-log & 5-year weekly arithmetic) appeared to be completing its profit taking and distribution phase. Subsequently, I have maintained that gold is back in an accumulation phase, similar to what we have seen following accelerated peaks in March 2008 and April 2006.

To confirm this hypothesis and parallels with other lengthy consolidations following upside acceleration, gold needs to hold its recent reaction lows in the upper $1600 region. That would clearly be a big improvement on its three previous reaction lows in the $1525 region. Moreover, gold then needs to move back up to and above its three previous rally highs near $1800.

Once gold is clearly holding above $1800, sentiment will improve further because people will see a considerable amount of underlying support capable of fuelling a significant upward extension to this secular bull market. On past evidence, we may see new all-time highs for gold in USD around the 21-month average of its previous lengthy reactions and consolidations. That would suggest a new all-time high for gold in USD by May 2013, if not sooner.

This hypothesis is based on gold's overall trend consistency which Fullermoney has discussed for years. Interestingly, veteran subscribers will have noticed that the biggest and longest trends are often quite consistent; 1) first because they are fuelled by powerful fundamental factors; 2) second because of crowd psychology as people recognise and then reinforce the trend's major characteristics.

Note that gold's sister precious metals - silver, platinum and palladium have broadly similar patterns at this stage of their development.