Why the Price of Gold Has Increased 700% Since 9/11

Ten years after the black swan event of 9/11, the gold bull market continues. The day before 9/11, gold closed at $271.50. Ten years later, it hit a record high of $1,895 on September 5, meaning the price of gold has increased almost 700% since the hijacked planes crashed in New York City, Pennsylvania and the Pentagon.

Then we had the Great Recession of 2008, which some say still hasn't ended. Since gold has always been considered a safe haven for investors in uncertain economic times, it's no surprise investor demand for gold has increased and thus the price of gold as well.

There are four types of investors driving this demand:

1. Americans, Europeans and others who have renewed their interest in gold as a secure investment. In fact, the amount of gold being purchased as an investment from 2001 to 2011 is more than twice what it was from 1974 to 2001, according to Jeff Christian of CPM Group.

2. China and India, neither of which ever lost...