09/16/10 Stockholm, Sweden – It’s called “The Great Gold Rush of 2010,” according to a recent Nightline episode featured below. With global demand already high, and many institutional and individual investors still in search of a replacement for paper currency in the face of economic uncertainty, the price of gold has been continually ticking upwards. From $270 an ounce back in 2000 to about $1,270 in 2010, the precious metal of “beauty, scarcity, and solidity,” has provided safe harbor for several millennia of anxious investors.
If that’s not enough to take a gander, there’s a great clip of the gold dispensing machine in Abu Dhabi. All of which begs the question… is it a wild and misguided frenzy for frothy gold as Ben Stein suggests? Or, is it really different this time, given a much more devastating economic downturn in the making?
You can decide for yourself by viewing the Nightline video below which came to our attention from a post on the modern gold rush at The Big Picture blog.
Rocky Vega
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
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I find it amusing when people say that gold is currently at an all-time usd high. When in reality, in terms of real prices for real things like milk, eggs, gasoline, insurance, a trip to McDonnald’s, etc (thinking in real terms of actual prices of things in the communities I’ve actually lived in over the past 30 years) gold is only at an average to slightly below average price in terms of purchasing power. Based on the current usd price of real goods and services, the usd price of gold would have to be around $3,200/oz. to be equivalent to the $800+/oz. spike that occurred in 1980.