Time to re-evaluate gold as prices soar to 11-month high
THE gold bugs are at it again. Talking up the value of their favourite metal to levels last seen in 2011.
Spot gold hit $1,778.50 an ounce yesterday, although trade was thin as the Chinese continue to celebrate a week-long holiday. That's an 11-month high but still below the important $1,800 level.
There are plenty of rational reasons to buy gold -- central banks in the West are busy printing money and debasing their currencies; but there are also plenty of irrational reasons.
Gold importers in India, the world's largest consumer of gold, have stayed on the sidelines because October is seen as an inauspicious buying period. Strikes in South Africa are meanwhile helping to support prices.