It is enough to make a gangsta rapper curse. The cost of bling is rising sharply. On March 5th gold took a pot shot at $1,000 a troy ounce, hitting a record $991.9. It is widely expected to shoot even higher than that in the near future.
As the dollar is the dominant global currency, gold appears to be acting as a hedge against the greenback; rising when it falls. But since the start of 2005, it has doubled in euro and yen terms as well.
The rise in the gold price has revived the prickly issue of whether central banks were right to sell their reserves earlier this decade. Britain's Treasury recently admitted it had sold about 12.7m ounces for $3.5 billion.
That gold would now be worth around $12.5 billion.
> From the Economist
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