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Is Gold now the Ultimate Bubble?

Posted by Delia Bass on

Is Gold a New Bubble?

Man has always shared a strong affinity with gold; a relationship which has spanned the centuries from the start of civilization to today. The allure of gold has inspired generations of men and women to go to great lengths in a quest to hunt it down, to horde it as wealth and to seek pleasure from it as jewelry. The appeal for gold has increased with time and this appeal has gone beyond the appeal for its aesthetic beauty. Gold is sought for many reasons including being a very lucrative investment. The price of gold has gone up sharply and recently, billionaire investor George Soros has declared, Gold is now "the ultimate bubble" - sparking fears that prices for the precious metal may soon suffer a tumble in 'Davos 2010'.

The Appeal of Gold Since ancient times, gold has been used to create the finest objects of art, religious articles and fine jewelry. Because gold can be mixed with other metals to create different colors and karats, it is one of the most popular metals for jewelry today in the United States and Europe. Gold, as a precious metal, has been valued and held in high esteem since ancient times and is still one of the most highly prized metals that has, throughout the ages, been used to symbolize wealth and power. 24 karat gold is pure gold. The term "karat" refers to the percentage of gold, versus the percentage of other metals, in an alloy..

Read more about gold in our Education Pages.