By J. Alejandro Artiga-Purcell, November 18, 2011
In Foreign Policy in Focus
In September of this year, the price of gold reached a record high, breaking $1,900 per ounce for the first time in history. This unprecedented spike in gold prices has come in the midst of the U.S. debt crisis and the financial turmoil sweeping over Europe. Although prices have tempered since then, hovering around $1,650 per ounce in October, the overall price of gold has more than quintupled over the past decade.
The rising uncertainty of today’s economic climate has only intensified the allure to invest in this precious metal, which, unlike the dollar and the euro, has a value that is not tied to sovereign debt or hobbled economies, making it a safer investment. That’s why recent boosts in gold prices will likely fan the already raging flames of today’s gold rush, which began when the value of gold first shot up in the early 2000s.
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