Don't Let The Gold Bugs Give You Inflation Nightmares

What does gold signify?

For decades, the debate has raged unresolved: Is gold a barbarous relic or a store of value? A flashy symbol of wealth or a harbinger of inflation? After years of quiescence, gold has begun climbing in recent months and is again a focus of attention. Rising waters on the Mississippi not only pushed soy and grain prices higher but also led speculators to bid up gold, silver, and platinum to higher ground. Now, as gold flirts with $400 an ounce, it's inevitable that people remember the late 1970s, when it surged past $800. Does the rising price of gold signal a new inflationary cycle?

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