Gold is trading near yet another record high: In early Monday trading, the price was at $2,250 a troy ounce. An explanation for the latest excitement? Inflation. One common feature of gold rallies is the thought that inflation is high and may get higher. When that happens, money becomes worth less because it buys less. At a time like right now, when central banks are reluctant to raise interest rates that would make people feel better about keeping their holdings in cash, commodities like gold become an attractive alternative because they’ve become a recognized store of value over the centuries.
In addition to being a store of value and a hedge against inflation, gold mining practices, especially artisanal and small-scale mining, can have severe environmental and social implications. While these miners form a significant part of the workforce in countries like the Philippines, they often work in hazardous conditions without proper training or protection.
