The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
By Ivan Martchev, Navellier and Associates, for InvestorPlace
NEW YORK ( InvestorPlace) -- For 11 consecutive years investors in gold bullion have seen only gains. Those involved in financial markets know that no winning streak lasts forever, so does it make sense to chase the Midas metal at the present lofty price levels? While anything can happen on a three-to-six month horizon, none of the drivers of the rally in gold bullion have gone away. One could credibly argue that they have gotten stronger.
The total amount of all gold ever mined since the beginning of civilization is 166,600 tonnes ($56.6 million/tonne, or $1,770/oz., would equal $9.4 trillion in total present value). Of that, only 30,808 tonnes is part of gold reserves held by central banks at last count. Since central bank gold buying hit 40-year highs in the fourth quarter, it is difficult to see how the gold price can decline precipitously from here.Follow TheStreet on Twitter and become a fan on Facebook. Corrections are possible, if not probable, but central banks are increasing gold buying for very good reasons and are likely to emerge as aggressive buyers on any (large) dips. (Read about how PMI is weighing on gold). This is because total forex reserves held by central banks have increased to $11.4 trillion -- mostly held in U.S. dollar-denominated debt instruments -- and this constantly growing amount needs diversification in other currencies and assets.