Growing concerns about the value of more risky investments in light of the economic crisis in much of Europe and continue issues in the US and other parts of the world have prompted another run up in gold prices.

The early 2010 pullback in gold did not last long as gold pushed to a new high this week and currently sits at $1,243.90 in New York trade.

The latest upward move in gold has of course prompted much speculation as to just how high the rate of gold can go. At the high end, some analysts have suggested $3,000 per ounce is not out of the question within the next 12-18 months.

This sounds pretty wild concerned that would require a more than 100 per cent gain from its current spot rate. However, given that the country of Greece is looking to Germany and others for credit bailout to avoid bankruptcy, while other major European economies are in the same boat suggests it is certainly possible.

Always thought of as the safe money investment, gold prices have surged of late even while oil prices have slumped to the mid-$70s. The Euro has been getting hammered the last week to ten days as concerns about Portugal’s credit worthiness have added fuel to the growing economic fire in Europe.

A sharp spike earlier this week in the Euro (and US equities) followed news that Greece was going to get assistance. However, that was fairly short-lived and the Euro has once again dropped to around $1.26 as it keys in on major long-term support at $1.24-1.25. This level should prove key to its long-term direction.

The safe money still appears to be flooding into gold, though, and there appear to be more investors turning their attention to a more cautious investment approach in light of the hard to have previously imagined challenges faced by major global economies.

More aggressive investors have often overlooked the potential of gold investment because it was too safe and required patience. Gold delivered a remarkable 17 per cent annualized return in the first decade of the 21st century. Given the speculative possibility of a 100 per cent return in a much shorter period of time than ever before, it is no wonder the potential for gold prices is treading in new waters.