Economics: The price of gold

With gold prices currently at a 25 year high and several groups looking to cash in by launching gold...

With gold prices currently at a 25 year high and several groups looking to cash in by launching gold funds, there are some concerns as to the sustainability of the sector. Natural resources, economists say, is a sector that can very often be driven by speculation or hedge fund activity with some believing this could be the case at the moment. Ian Kernohan, economist at Royal London Asset Management, said that many people have been trying to work out why the gold price has risen so much. “Historically gold has been used for a number of things and, while it has value in the jewellery market...