Critical Issues
Background:
Gold is the world’s pre-eminent physical store of value, and as such it usually rises in price at times of economic or political stress, and when investors expect high inflation. The gold price has been rising fairly consistently since the onset of the 2008-2009 global financial crisis, passing the $1,000/ounce mark in late 2009 as investors turned to gold in the face of a weakening U.S. dollar and rising fears about future inflation as government deficits and future borrowing needs are set to increase sharply. A partial recovery of demand for physical gold in jewelry, especially in India, has also driven the gold price (jewelry consumption accounts for more than half of all physical gold demand, followed by investment demand; industrial and dental applications are also significant).
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Associated Readings
Analysis
World Gold Council (free subscription required
World Gold Council
Nov 19, 2009
Gold Demand Trends: Third Quarter 2009
Analysis
World Gold Council
Natalie Dempster, John Mulligan and Juan Carlos Artigas
Oct 26, 2009
Gold Investment Digest - October 2009
Analysis
Erstebank
Ronald-Peter Stöferle
July 2009
Special Report Gold – July 2009: In Gold we trust
Analysis
Barron's
Allen Sykora
Jul 20, 2009
Gold Still Has That Glitter
Analysis
BNP Paribas
Jun 11, 2009
Gold: Does the Buck Stop at USD 1000/oz? | Oil: Trading the S&P 500
Analysis
Resource Capital Research
Jun 03, 2009
Gold could see the price above US$1,000/oz in 2010
Analysis
Fortis Bank
Carl Firman, Matthew Turner and Gary Mead
May 27, 2009
Official gold - does share of reserves matter? | Demand for base metals will contract
Analysis
Citigroup
Alan Heap and Alex Tonks
May 22, 2009
Commodity Heap: Gold
Analysis
LFB Forex
May 2009
Gold At $5000 If Reserves Are Counted Correctly
Blogs
Seeking Alpha
Mark O'Byrne
May 11, 2009
Gold Remains Undervalued vs. the Dollar
Analysis
Alliance Bernstein
Anthony Chan
May 04, 2009
China’s FX Reserves Diversification Is Positive for Gold Price and RMB
Blogs
Marc Chandler
Apr 27, 2009
How Does $9000 Gold Sound?
Analysis
UBS
John Reade
Apr 13, 2009
Gold & The Greenback
Analysis
Banc of America Merrill Lynch
March 2009
Commodities and inflation: a framework for asset allocation