Gold's surge to its highest price in decades may be signaling growing inflation, but the upward pressures
Gold's surged to its highest price since February 1983 on Friday.
Gold on Friday rose to $506.50 an ounce, its highest level since February 1983. That follows a five-year rally from a near record low of $261 in 2001.
Analysts have cited inflation fears as playing a major role in fueling gold's rise, especially over the past year, although gold's supply and demand fundamentals also have been positive.
Investors are increasingly turning to gold because "people are nervous about storing their wealth; there are a lot of danger signals out there," said Peter Schiff, president of Euro Pacific Capital in Darien, Connecticut.
Schiff said gold was one of the most reliable indicators of inflation and its gains are signaling a growing risk.
