Word: goldings
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Dates: during 2000-2009
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...face of appreciation of the dollar and a financial meltdown, dollar-denominated gold has still managed to hang in there, near its high. Speculation remains rampant...
...speculation in the gold market is nothing like speculation in other markets. Unlike oil, gold is not consumed, and even when it is used in products like jewelry, it is recoverable and thus maintains its value as the gold that went into it. In other words, the total supply of gold is increasing with gold mining...
Most speculation is motivated by the desire for profit. It seems that recent interest in gold is instead motivated by the desire to maintain value. After all, the price of gold in dollars has not shown a steady return. As the government continues to enact costly but what many believe to be inadequate solutions to the financial crisis, investors fear the worst for the future of the economy and the the dollar. Thus, the price of gold has become a measure of confidence in the government to handle the crisis...
Traditionally, gold has been a store of value when citizens do not trust their government politically or economically. In Asia, ordinary people -not investors by any means - historically have held tremendous amounts of gold in jewelry. Now that same concept has extended to more-sophisticated investors, who hold gold not in jewelry but in bars and derivative contracts...
...Gold, then, can be considered a currency, unique in that it is not directly tied to any country's economy. With a global recession that is bound to continue to shake up the purchasing power of all foreign currencies, gold is safer from political and economic instability than cash...