From what I've been able to understand from the research I've
done, gold prices have gone up because of "gold bugs," or
investors who buy up gold certificates (backed with gold, of
course). After 9/11, a lot of people started moving their money
into precious metals and copper, and in the last couple of years,
countries have been increasing their gold stocks as a hedge for
their economies. India and Russia have been some of the biggest
buyers. Gold prices have gone up because there just isn't as much
available to sell.
Apparently, the weirdest feature about the current gold rise, is
that oil prices aren’t in tandem with the price of gold. I’m not
sure yet why those two are normally connected, but I’m still reading
up on it.
The only consolation I can offer, is that while suits jollyjack
around with materials fundamental to our livelihoods, that what goes
up, must come down. That’s as true in finance as it is in gravity.
We can only hope.
I wish everyone a Merry Christmas, and a Happy New Year.
Back in San Antonio, employed, and about to get her own place