Gold prices have risen as the FTSE and Dow Jones plummet, but why have they not shot through the roof?
Recent cataclysmic events in the financial sector have helped gold regain its lustre, as savers pile into the safe-haven investment. With the dramatic collapse of Lehman Brothers, described by many as the worst day on Wall Street since the 1929 crash, gold prices were slow to react. While the FTSE 100 and the Dow Jones tumbled in response to the news, gold prices quietly nudged up from $765 to $786 per ounce on close of trading. As bad news continued to flood in, gold then shot up to $880 by the beginning of October. Justin Urquhart Stewart from Seven Investment Management said: "When...
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