Global stock market turmoil in January 2008 drove investors toward gold, pushing the metal to an all-time high of $923.73 per ounce on the London Bullion Market. The surge came after equity markets worldwide dropped sharply on fears of a US recession, prompting the Federal Reserve to cut interest rates by 75 basis points in an emergency move.
Analysts say gold's appeal in volatile times stems from its scarcity and its reputation as a store of value. Unlike paper currency, it cannot be produced at will by governments, limiting inflation risk. Warwick Grigor, chairman of Far East Capital, predicted gold could reach $1,500 to $2,000 per ounce within a couple of years.
Analyst Trevor Sykes noted that gold has served as a medium of exchange for roughly 3,000 years, far longer than paper money, and functions as an active currency across much of the Middle East, India, and Asia. Extreme currency collapses, including Germany in 1923, Hungary in 1946, and Zimbabwe, where official inflation stood at 8,000 percent, illustrate the risks of paper money.
Gold's monetary role has a long history, from ancient Lydia, in present-day Türkiye, where coins were first struck around the 6th century BC, through the Bretton Woods system that tied currencies to gold after World War II until its collapse in 1971.
Historical summary. TurkishPress restated this wire report, first published in January 2008, in its own words.