Those pesky gold bugs

April 17, 2006

I consider myself just a distant kissin’ cousin to the real gold bugs, but I confess that I have a smidgen of the yellow stuff tucked away somewhere just in case. Now, after years of obscurity, gold is again getting some respect. Or at least some press.

The bugs are back | Economist.com

AFTER some two decades of misery, it is only fair that gold bugs should enjoy themselves. Enthusiasts for the shiny, yellow, metal are delighted that gold futures passed $600 a troy ounce on Tuesday, April 11th, up by 16% so far this year. Adjusted for inflation, this price may still be nowhere near the highs producers once enjoyed. To match the peak, when the spot price hit $850 in 1980, gold would yet have to rise to about $2,200 in today’s money. But the bugs have excuse enough to cheer.

The article points out that it is not at all clear exactly why the price of gold is again rising but concludes that the the upward price trend is likely to be with us for a while. I morbidly reflect that the peak prices may come just in time for me not to enjoy them.

Dave, always ready to enjoy himself while he can.

Posted by Dave | Filed Under Economics