Gold is one of the most coveted and precious metals there is. Full of beauty, it becomes more scarce every day. That reason alone makes gold a good investment. Owning gold bullion or coins in your investment portfolio is a wise decision in any market.
Rarely does gold go down in price, but it can. It can be just like riding the stock market out though. There are good times and bad. As the dollar weakens as has been the trend, the value of gold goes up.
Around 2002, gold had a value of around $380 per ounce. Today, in 2009, gold has been usually been above $800 up to $900 an ounce. Experts predict that after this recession is over, inflation will take hold and gold could hit over $1300 an ounce.
Gold is the perfect hedge against inflation. Gold is bought and sold in U.S. dollars. Any decline in the dollar causes gold to rise. Gold can be used as a safe haven against world events. Think about things that go on in the world today. If conditions worsen and the dollar falls out of favor, gold will still be valuable and hold worth until the new currency is brought in.
While silver and platinum are other good precious metals to own, they aren't as scarce. On the other hand, gold isn't used so much in commercial applications like the other two. Look at the trends today. Gold is constantly desired by people and the market.
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