It’s hard to decide what’s more frightening: that investors are losing confidence in paper money or that the shepherds of the world’s major currencies don’t get what’s going on. Gold’s climb of almost 30 percent in a year reflects fear, not just market concern over inflation or deflation risks. People have lost trust in the global financial system.
By disclosing a plan to conjure $600 billion to support the sagging economy, the Federal Reserve affirmed the interesting fact that dollars can be conjured. In the digital age, you don’t even need a printing press.
The relative price of gold and oil has remained almost constant over the past 50 years. So although the price of both (in either pounds or dollars) has risen during this period, if you were buying a barrel of oil with bullion you would hand over roughly the same weight of gold as you would have done in 1950. More startling is that gold has retained this purchasing power over even longer periods. It is thought that an ounce of gold bought...
Scientists have shown that the Earth's surface became enriched with precious metals by impacting meteorites. The Earth's crust and mantle has considerably more gold than expected from favoured models of planetary formation. A study from the University of Bristol looked at some of the oldest rocks on Earth, demonstrating that gold was delivered by meteorites long after their formation.
Tens of thousands of Peruvians have flocked to the country's Amazon region to join a chaotic gold rush. But illegal mining has led to violence, pollution and the destruction of parts of the country's precious rainforest.