Reading on Andrew Huang’s Blog, I came across an interesting post regarding the value of gold over the century and the impact it has on the economy of a nation. Gold has always been a symbol of wealth and luxury and its increasing popularity and price have made the emphasis to that symbol even greater. I was quite astonished to find out that the price of Gold was only $100 an ounce in the 1970s (Huang, 2012) and that the price of it had risen 30 times greater to the value of $3000 an ounce in the present day (Huang, 2012). Like Andrew, the lecture on the Time Value of Money had immediately refreshed itself in my mind. The ever constant rise in price of gold would mean that purchasing amounts of it would be a good investment for the future if you were to resell it because buyers just melt the gold and reuse it anyways. One question I wonder about this post is how the prices of gold fluctuate and rise. Linking to economics, I feel it is definitely about the supply and the demand of gold. Since gold is relatively inelastic and has few alternatives, I believe that this is a factor in the ever rising price of it.
Andrew’s Post on Gold Here!