Lately, the price of the precious metal has soared in recent years. Gold has been golden.
In trading Tuesday at the New York Mercantile Exchange, the contract for an ounce of gold to be delivered in August 2008 settled at a whopping $923.3. Consultant says may hit $1000 an ounce next month.
Why is gold so hot? It's partly that gold is simply being swept along in the global commodity boom. The prices of metals—copper, steel, and gold—have all risen sharply, along with prices of sugar, soybeans, oil, and natural gas. The rising industrial and consumer bases in China and India. Production of most of these commodities is increasing—just not rapidly enough to keep up with demand, or with perceived future demand. At root, prices are rising because people are consuming more of the stuff. There's no way out but up for gold now. Either the global boom continues and rising demand carries gold higher, or the boom goes bust and the consequent inflation does the job for gold
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