The Globe and Mail reports in its Saturday edition that gold prices are surging, currently trading at over $2,500 an ounce. The Globe's guest columnist John Rapley writes that this marks a 25-per-cent increase since the beginning of the year and a 7-per-cent rise in just the past month. This makes it a great time to own gold, but it might also be a warning sign. Initially, the increase in demand was driven by central banks looking to diversify their reserves away from the greenback. More recently, retail investors have also started getting involved. Since the end of the easy-money era, gold is up more than 40 per cent. Mr. Rapley says it tells you something when a shiny rock has become the hottest thing going. Specifically, it tells us that things may not be quite what they seem. To judge from the breathless commentary on the business channels and X, central banks have squeezed the pips until they squeak. Because central banks have put implicit floors under asset values, financial institutions have retained the confidence to keep money moving. Gold prices suggest investors think the screaming about an impending collapse is playacting, designed to get central banks to throw cheap money around once again.