Has the gold rush stimulated renewal?

The price of gold is influenced by many factors, including international politics, greed, and technology. Gold typically is located in inaccessible places in politically troubled areas, and is costly to extract. Annual transactions between governments and official organizations, at 500 tonnes, represents a fraction of the annual global production of two million tonnes. The majority of gold consumption is by the jewelry trade, with jewelry often representing a convenient store of value. Gold is considered a classic hedge against inflation, and it has begun to increase in price due to the renewed interest in gold as an investment medium. Gold could settle at a price of just above $500 an ounce in the early 1990s and is a sound investment medium because while the downside of gold is limited, its potential for appreciation is great.