The Dark Heart of Gold

The price of gold reached an all-time high of $2,000 per ounce in early August. And while mainstream economists have treated gold as a sideshow since the world abandoned the gold standard in 1971, this recent price spike is a significant signal.

Three explanations for the elevated gold price – related to US monetary policy, risk, and investors’ growing desire for a safe-haven alternative to the dollar – have been offered. Each contains some truth.