In the late 1970s gold spiked over $800 , then imploded and traveled sideways around $300 for about 20 years .
The current escalation started in 2001 . . .
What was the cause of the 70s spike & implosion ?
What is the current cause of the spike ?
thanks
2007-11-06 01:21:10 · 3 answers · asked by kate 7 in Business & Finance ➔ Other - Business & Finance
Gold is called "fear metal". When the economy gets out of whack or there is world conflict that bothers people they buy gold. That makes it go up. And, yes, I do see gold hitting $1000 in the not too distant future.
2007-11-06 01:26:12 · answer #1 · answered by DrMichael 7 · 2⤊ 0⤋
part of the current price increase is due to higher demand - more gold is being used in products. also people buy gold as a hedge against inflation when the economy is shaky, like ours has been, further driving up demand and price
2007-11-06 11:26:06 · answer #2 · answered by Anonymous · 0⤊ 0⤋
maybe that war between IRAN & USA , very soon >!
2007-11-06 13:15:23 · answer #3 · answered by Anonymous · 0⤊ 0⤋