"Higher prices usually slow down demand, not spur it on. I think...

"Higher prices usually slow down demand, not spur it on. I think I learnt that in my first day at uni."

Ace, that's what happens to gold the commodity - jewelry demand has fallen by around 1300 tonnes annually since its peak in 2000.

However, from an investment viewpoint higher prices cause higher prices. Investment demand for gold keeps increasing, bringing more people on board.

The gold price is inversely proportional to jewelry demand. When that starts rising again we'll be in a bear market.

Rowingboat