Gold rush: All change for the world's favourite metal

[Tascio]

Very interesting article about gold from the BBC:

http://www.bbc.co.uk/news/business-13156756

Gold's position as the ultimate storer of value has remained largely unchallenged for centuries.

The metal's rarity not only meant it became a recognised and trusted form of payment, but also bestowed upon it an almost mystical allure.

This came about not through historical accident or coincidence, but for the simple reason that nothing else fitted the bill; almost every other element is either too common, reactive, corrosive or gaseous. And most of those that aren't are just too scarce.

Throughout history emperors, kings and queens, governments, central banks and investors have trusted gold to maintain its value.

This is simply because gold is a physical asset with a finite supply, unlike cash, equities and bonds, which can be printed or issued at will.

For investors, therefore, it has always been seen primarily as a good hedge against inflation - traditionally, few people bought gold to make money, simply to protect themselves against losing it.

[Lots more at the site]