Bold on gold!

In this weekend’s FT Magazine Gilliant Tett has written an excellent column on the precious metal. Perhaps one of the best ever written on the subject. Gold is, indeed, a “premier currency”: It possesses all the characteristics other ‘fiat’ or ‘virtual’ currencies lack: Historically ‘anchored’, finite supply, tangible and, last but not least, a beguilingly beautiful substance with an enigmatic appeal. This explains its enduring appeal, creating the illusion of permanent, intrinsic value.

However, it is a myth to believe gold is a constant store of value. Like anything else, the price of gold is created by supply and demand: Gold in need of a polish?