Have you been one of those people who have watched the price of gold, and its explosive increases, with a sense of awe and astonishment? A lot of novice investors have no clear explanation for the dramatic price increase for an ounce of gold bullion, but it is actually very useful to understand the “how’s and why’s” of the boom in the price of gold.
What do we mean by “boom”? Well, only five years ago you could have purchased roughly four full ounces of the metal for today’s price on a single ounce! Around 2008, the average price of gold ranged between four and five hundred dollars. In September of 2011, gold was selling at around sixteen hundred dollars for an ounce!