You have your gold, silver, stocks, bonds and numerous other ways to invest your money. The most popular as an investment is gold, a precious metal.
The market value for gold goes up and down but what exactly is it that influences it value? Well, there are several factors. The number one factor would be supply and demand. Factors that affect the supply and demand would be hording and disposal for one.
It was in March of 2008 that gold reached an all-time nominal high of $1,002.80. This was well below the 1980 peak of $850.00. By November it had fallen as low as $709.50 and then proceeded to take a trend upwards, breaking the $1000.00 mark by the month of February of 2009.
The economic crises such as the Great Depression, World War II, and the first and second oil crisis, played a role in lowering the ratio as seen by the Dow/Gold which as an indicator of the severity of the recession. This gave people an outlook if it was improving or deteriorating, a value well below 4.
Gold bullion beat all other asset classes yet again in 2008, the second year running and the third time since 2005.
In 2008, Gold bullion won out over all other asset classes. This was the second year running and since 2005, was the third time it did so. There are six reasons why investors own gold. Number one being it is a hedge against inflation followed by four other reasons ending up with the last being as a portfolio versifier.
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