WHY did the price of gold hit highs in 2008? Take a look at the headlines – goverment bailouts of failed banks, mortgage and credit crisis, rising inflation, slowing growth and global insecurity. In order to protect themselves from treacherous finaancial markets and depreciated paper currencies investors worldwide are turning to gold.
Gold has long been used as money and as a store of wealth, but what’s the source of its value? Why does value sometimes rise so high and at other times fall so slow? And what do we know about gold’s complex and often tumultuous that may yield clues about how it may behave in future?
Gold is a side show on a world financial stage dominated by the dollar. The tail can’t wag the dog – gold prices are effected by changes in prospects for the dollar and not vice versa. With uncertain outcomes for the Melayu and global economies, gold’s sateteless money franchise makes this note compelling reading.