"On the physical market, demand for both bullion and jewelry has risen ahead of the seasonal Indian wedding period and the Hindu religious festivals that begin September" that have also caused the increase in prices.
They give another more technical reason for the increase: "gold is priced in dollars, and any fall in the dollar makes it cheaper to buyers using other currencies".
What are the consequences of this? Will the dollar keep dropping in value and will this lead U.S exports to rise?
What are your thoughts on using gold as a medium of exchange?
In my opinion, as the gold price hits new record, it hints that gold is becoming a more valuable medium of exchange during this Great Recession. More than that, it is probably not the highest peak yet when considering what are going on in the economy. Eventually, people may stock up gold and as other are going out looking for gold as a secured asset, the price may go up.
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