After going nowhere for the better part of the past six years, the price of gold is surging. Since November last year, it has gone from around US$1,200 an ounce to US$1,514 at the end of last week, a rise of more than 26 per cent. This year alone, it has risen 18 per cent. Gold bugs are bullish, with some even predicting that the price of gold could double from here.
Why is this happening? What might have triggered a change in the mindset of the market that has led investors to suddenly pour money into an asset with a zero yield?