As some of you wish to move on from the thoughts prompted by the funeral of Margaret Thatcher, let me give you this opportunity to do so.
In recent days gold has plunged in value. Some see this as the predictable decline of a barbarous relic. Why should it be so highly priced, they ask, when it only has value for adornment? Others see this as an unwelcome interruption to the steady climb of true money’s value, serving to highlight the way many Central Banks around the world actively debase their currencies in the now famous race to the bottom, the attempt to get trade advantage from competitive devaluation.
Gold’s critics say its high volatility show it is unsuited to return to a monetary role. Gold’s advocates claim its long rise in recent years has shown that the world would be a less inflationary place if gold returned to a role in our monetary system.
What are your thoughts now on the future role of gold? How do you explain the extreme price actions both on the way up and now on the way down?