As volatility and uncertainty continue to eat at commodity futures traders and brokers' confidence, one asset class seems to draw interest week after week. Gold has been glittering since the beginning of the year, climbing nearly 20 percent while stock indexes flatline.
Though governments have taken on huge amounts of debt and pumped a lot of liquidity into the global economy, the subdued economic recovery hasn't translated all that extra cash into an increase in prices, or inflation.
But there appears to be a race on to devalue currencies – China keeps its renminbi artificially low, Japan works to undermine the yen and the U.S. tries to compete with exporters around the world. Not every country can have a cheap currency with high exports, though, and efforts to compete based by devaluing are driving many investors out of cash altogether and in to harder assets like precious metals.
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