HIGH PRICE OF GOLD
Where will it slop? For the past few days the price of fine gold has been rising with extraordinary rapidity. The market price was quoted on January 1 at 140s 10|d; yesterday the price was 145s Id. Why this appreciation which, incidentally, means the depreciation of the British £ sterling in terms of gold? The only answer—on present . appear-ances-^-is an unparalleled demand for the precious metal. But this is not good for the return of the trade of the. world along a smooth, untroubled course. Gold thus acquired is hoarded and held on national and ■private account. It does not function as gold held by banks against their 'note issues. This avid demand suggests fear, and fear acts as a relentless brake on international mutually satisfactory trade and financial relationships.. The best that can be said for the rise in the price of gold is the benefit it confers on the gold-mining industry. Some of those benefits are most undesirable if they take the form of feverish speculation or the prosecutioir of mining or dredging that would have little or no prospects of success if gold fell below £7 per ounce.
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Bibliographic details
Evening Post, Issue 52, 2 March 1935, Page 8
Word Count
194HIGH PRICE OF GOLD Evening Post, Issue 52, 2 March 1935, Page 8
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