Gold retains value over centuries -study
11:06 a.m. Nov 24, 1998 Eastern
LONDON, Nov 24 (Reuters) - Gold has retained its value over the centuries relative to other assets in major world economies, according to a study released on Tuesday for the producer-sponsored World Gold Council.
''Although the gold price may fluctuate, gold has consistently reverted to its historic purchasing power parity against other commodities and intermediate products,'' study author Stephen Harmston said in an accompanying statement.
The report drew on data stretching back to the late 16th century in Britain, the 18th century in the United States and the 1800s in France, Germany and Japan.
''In all five, over the very long term there has been a tendency for gold to return to an historic rate of exchange with other commodities and intermediate products,'' Harmston said.
''In each of these countries, the purchasing power of gold dramatically increased after the abolition of dollar convertibility in 1971 but has since returned to its historic level,'' he added.
Gold fixed at $296.45 a troy ounce at London's afternoon fix, up on the morning's $295.95.
Spot gold hit 19-year lows near $270.00 on the spot market last August, before staging a recovery on dollar weakness and other market factors.
((Patrick Chalmers, London Newsroom +44 171 542 8057. london.commodities.desk+reuters.com)) |
