It might seem unreasonable that expectations about possible events can drive prices up, but consider the situation of people in a lifeboat on the open ocean.
Inflation has risen in several countries, tied to sustained strong domestic demand and rising food and fuel prices (made worse by drought in Bulgaria and Romania).
The worry in Canada and elsewhere is that what goes up might come down, and history amply illustrates the economic harm done when housing prices plunge.
The value of the glistening commodity, useless for most practical purposes, increased almost 400 per cent, from less than $500 an ounce in 2005 to about $1, 900 in September.