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$4,000 Gold: What Is Going On?

The investing public seems to think that the doubling of the price of gold in a mere two years is no big deal. I think that it probably is.
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$4,000 Gold: What Is Going On?
Gold bars are stacked in a vault at the U.S. Mint, in West Point, N.Y. AP Photo/Mike Groll, File
Mark Hendrickson
Mark Hendrickson
contributor
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Commentary

The price of gold recently breached $4,000 per ounce for the first time ever. That is an extraordinary move in the price of an asset that in most years can be described as stodgy, if not boring. Gold never traded above $3,000 per ounce until last March, and $4,000 per ounce is more than double the price that the yellow metal was trading at a mere two years ago.

Mark Hendrickson
Mark Hendrickson
contributor
Mark Hendrickson is an economist who retired from the faculty of Grove City College in Pennsylvania, where he remains fellow for economic and social policy at the Institute for Faith and Freedom. He is the author of several books on topics as varied as American economic history, anonymous characters in the Bible, the wealth inequality issue, and climate change, among others.