"Global investors have acquired a taste for risk," says Paul Kasriel, chief economist for Northern Trust. "They're looking at Australia, Brazil, Canada, seeing higher yields and seeing commodity prices rising."

By moving money from currencies of countries with low interest rates to those with higher rates, investors are also driving down the value of the U.S. dollar.

Continued worries about U.S. deficits also have pushed investors away, says Dan Denbow, co-manager of the USAA Precious Metals and Minerals fund.

Although gold is seen as an inflation hedge, its long-term record is spotty. Nearly 30 years ago, in January 1980, gold peaked at $850 an ounce. Adjusted for inflation, that'd be $2,228 today.