You’ve probably noticed by now that gold, and more specifically skyrocketing gold prices, is just about the only thing people talk about these days. Buying gold has become the new trend in investing as the “gold-boom” continues. With the stock market looking as risky as ever, bonds at the mercy of impending inflation and savings interest rates still yielding at low levels, there has been an understandable flight to gold in the recent past.
Gold, as it always has been, is a natural hedge to currency – and more specifically the US dollar. It isn’t the only one, mind you, it’s just arguably the most popular one. Any precious metal, commodity and in some cases, even stocks will serve as an inflation hedge. As long as your asset isn’t directly tied to the dollar, you should be fine.
Yet, investors have been rushing to gold during every scare the economy has experienced, pushing prices into historic highs. According to Goldprice.org, an ounce of gold currently costs about $1,325. What does this mean? It means that if you’re thinking about investing in gold, you should be REALLY sure about why you’re doing it.