If proof that gold is money was ever needed then this is it. Four countries, each with significant financial problems caused by the spend-easy qualities that come with fiat money, see their citizens turning to gold.
This morning the gold price hit a low of $1,704 before recovering. This month has seen the biggest monthly loss for the yellow metal in five months. The debasement of money is continuing, it’s just that countries are taking it in turns to make it “official.”
Gold reached an 11 month high on Friday riding its 5th day of gains as quantitative easing from central banks continue to see the yellow metal shine as an inflation hedge while investors await the key US jobs data at 1230 GMT.
Gold price sentiment has continued to surge – traders have made the biggest bets on a gold rally since seven months ago and the gold-backed ETP holdings have reached another record high at 2,565 metric tons.
As tensions rise among Iraqi Kurds in the country's north, Sunnis in the south and the Shi'ite-led government in Baghdad over the distribution of natural resources, Turkey is setting its sights on an unconventional alliance.
Gold edged lower on Tuesday despite the weaker euro and stock markets after furious citizens in Greece and France voted against austerity measures. Gold prices are being supported by bargain hunters who continue to buy dips.
Turkey has the potential to become one of the world's largest gold producing countries. At the end of 2010 there were just four gold mines operating in the country, but the government has been working on plans to drastically boost production.
While short-term corrections in bullion prices can be frustrating for investors, the pullback in miners has been even more pronounced. In the past month, the Market Vectors Gold Miners index declined almost 11%, while the Market Vectors Jr. Gold Miners index has fallen 14%.