Gold has better returns when the economy is good

 2008 was the date of the real estate bubble. For the united states, gold only grew 5 percent as opposed to double digit rates on any other year. Gold even depreciated against the Chinese RMB and the Japanese Yen as people fled gold and into fiat currencies.

 The economy is not good by any means since 2008. However with the press marketing quantitative easing policies and near zero interest rates. It is inevitable for investors to think that recovery is right around the corner. Thus they are going to invest in gold and commodities now thinking higher consumption will be just a few more quarters ahead.

  The truth is, there is not much in real demand right now except for investor optimism. People are not exactly buying SUVs and business cards written with gold print.