You Know Things Are Bad When Gold is Hot

It's crisis time again and that means boom time for gold! In December, an ounce of gold was selling for about $800. By the third week in February, it was trading at about $1,000. Is the eternal hedge against inflation really worth it's weight in, well, gold?

Economist.com today reports that a rise in demand for gold as an investment lies behind the gold surge. "Flows into exchange-traded funds, which buy and store gold for their shareholders, rose from 105 tonnes in January to 208 tonnes in the first three weeks of February, according to Suki Cooper at Barclays Capital. At that rate, inflows will soon surpass the total of 322 tonnes for the whole of 2008!

Why is gold so hot?


Fear. "When supposedly safe savings vehicles, such as bank deposits, look shaky and offer scant returns, gold has greater appeal as an alternative store of wealth," explains the Economist. "It also looks like an attractive each-way bet. If drastic cuts in interest rates work too well, that will fuel inflation. If they do not work, prices of assets, such as stocks and houses, will sink further." As one gold expert puts it, “Gold is something you buy if you have something to lose."

How high can gold go? Some think it could reach $2,300 an ounce, the same as January, 1980. The thing about gold is that there's a limited supply of it and lots of potential buyers—"ideal conditions for a bubble," says Stephen Jen at Morgan Stanley. So get out there and buy some gold.

How to vaccinate the world’s most vulnerable? Build global partnerships.

Pfizer's partnerships strengthen their ability to deliver vaccines in developing countries.

Susan Silbermann, Global President of Pfizer Vaccines, looks on as a health care worker administers a vaccine in Rwanda. Photo: Courtesy of Pfizer.
Sponsored
  • Community healthcare workers face many challenges in their work, including often traveling far distances to see their clients
  • Pfizer is helping to drive the UN's sustainable development goals through partnerships.
  • Pfizer partnered with AMP and the World Health Organization to develop a training program for healthcare workers.
Keep reading Show less

Why the White House Correspondents’ Association dinner won’t feature a comedian in 2019

It's the first time the association hasn't hired a comedian in 16 years.

(Photo by Anna Webber/Getty Images for Vulture Festival)
Culture & Religion
  • The 2018 WHCA ended in controversy after comedian Michelle Wolf made jokes some considered to be offensive.
  • The WHCA apologized for Wolf's jokes, though some journalists and many comedians backed the comedian and decried arguments in favor of limiting the types of speech permitted at the event.
  • Ron Chernow, who penned a bestselling biography of Alexander Hamilton, will speak at next year's dinner.
Keep reading Show less

Juice is terrible for children. Why do we keep giving it to them?

A glass of juice has as much sugar, ounce for ounce, as a full-calorie soda. And those vitamins do almost nothing.

Pixabay user Stocksnap
popular

Quick: think back to childhood (if you've reached the scary clown you've gone too far). What did your parents or guardians give you to keep you quiet? If you're anything like most parents, it was juice. But here's the thing: juice is bad for you. 

Keep reading Show less

A new study says alcohol changes how the brain creates memories

A study on flies may hold the key to future addiction treatments.

Scott Barbour/Getty Images
Mind & Brain
  • A new study suggests that drinking alcohol can affect how memories are stored away as good or bad.
  • This may have drastic implications for how addiction is caused and how people recall intoxication.
  • The findings may one day lead to a new form of treatment for those suffering from addiction.
Keep reading Show less