By David Levenstein: Suddenly, as the price of gold is showing signs of strength again, analysts from many major financial institutions are talking about prices going to $1300 per ounce and higher. Yet, a few weeks ago, when the gold price was trading down, they were talking about lower prices in gold. Being able to correctly predict future prices of any commodity is one thing, giving a commentary on the current trend is another. As far as I am concerned I don't know who these analysts are and don't much care either. They all seem confused and unable to see that the primary trend is upwards and that there are certain fundamental reasons why this happening. Many individuals still have the misconception that gold is used only for jewellery, and have forgotten that gold is also a monetary metal as well as a global currency. It is not a barbaric relic as it is often referred to by analysts who don't understand this metal.
Gold has always had value to humans, even before it was money. This is demonstrated by the extraordinary efforts made to obtain it. Prospecting for gold was a worldwide effort going back thousands of years, even before the first money in the form of gold coins appeared about 700 B.C. The first pure gold coins were struck by King Croesus of Lydia (present-day Turkey) during his reign between 560 and 547 BC and gold coins have continued as legal tender ever since. It changed the world of commerce as the yellow metal became a currency - a medium of exchange with a definite value - replacing barter and other commodities as money......read on
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