Clive Hale: A view from the bridge

"You have a choice between the natural stability of gold and the honesty and intelligence of the members of government. And with all due respect for those gentlemen, I advise you, as long as the capitalist system lasts, vote for gold." - George Bernard Shaw.

Gold is one of the most stable elements in the universe but its price of late has been anything but; although that would not be obvious from a long-term chart. The only significant blip would be during the flight to quality in 2008 – the final hurrah for bonds? The rise since the low of 2001 has been inexorable and far from the exponential blow-off often associated with precious metal peaks. The low came at the end of the infamous selling of 400 tonnes of the UK’s reserves by our former Prime Minister – then Chancellor – and is still known irreverently in the gold market as the Brown bot...