Gold bull has barely begun

With the price of gold on the up, you might be tempted to take proftis on any gold holdings. But the global economy is still in turmoil and the supply of gold is tight; further price rises - of up to 700% - by the end of the decade look likely.

With the price of gold on the up, you might be tempted to take profits on any gold holdings. But the global economy is still in turmoil and the supply of gold is tight; further price rises - of up to 700% - by the end of the decade look likely

Who'd want to be Gordon Brown these days? The UK economy looks more fragile by the day, he is going to have to raise taxes after the election, and his petty rows with his boss make front-page news every other day. Then there's the gold price. Back in 1999, when precious metals seemed to most to be a pretty pointless investment, he sold off more than half the UK's gold reserves at around $260 an ounce. It was a move that seemed to mark the bottom of the bear market in gold as surely as Tony Blair's £3.6m purchase of a house in London's Connaught Square marked the top of the bubble in UK house prices. The gold price has been in an uptrend since: towards the end of last year it hit 16-year highs at $450 and is currently trading at around $425 an ounce. So what's next for the yellow metal?

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