A new golden age

Traditionally when the value of paper money drops, gold rises. This recession is no different and interest in gold is gaining momentum

The purpose of gold is not to make poor people rich, but to keep rich people in the style to which they have become accustomed. It is a store of value. From one point of view, gold is a silly investment. A great deal of time and money is spent on finding it, building a mine, dragging it out of the ground and then refining it. As soon as it is then in pure ingot form, more money is spent on insuring it and it is promptly put in a bank vault, another form of hole in the ground. At no stage does it grow or pay dividends. You could keep it for 100 years or more and it would not have changed i...