Gold: ring the changes
If economies show signs of sustained recovery, expect gold to take a hammering
Like the metal itself, reasons to buy gold are malleable. Own gold for its untarnishable beauty, or as a store of value, or both. Jewellery is the largest stable component of demand. But when gold soars, as at present, bling starts to lose its zing. This can presage a price drop.
Demand for gold as an investment had outstripped purchasing for jewellery manufacture just three times in the past decade. That was until the last quarter. The switch suggests a speculative bubble is building.