eing not only an admirer of gold but also a gold investor, I get a lot of questions from intrigued acquaintances. They`re often interested in investing in precious metals but have fear because they don't know much about them. Rushing into an investment you don`t understand is always a bad idea, so I respect their caution. But I am very adamant that gold is the best place to have your money right now. So why own gold?



First off, if we look at the history of gold prices, we can see that gold acts as a preserver of wealth. Paper money was once a simple representation of an amount of gold stored somewhere on your behalf, but in this day and age paper money (or fiat currency) is not longer backed by real gold and it is susceptible to inflation and currency devaluation. Here in the United States, the government has been on a spending rampage and running massive trade deficits for decades, and funding those deficits by printing new dollars, devaluating our currency so that our buying power is steadily eroding. If you buy gold, however, you will maintain your buying power longterm because gold's value doesn't deflate. It's price fluctuates in cycles, but it has a core intrinsic value and gold will always be worth something.



Gold prices tend to increase along with high inflation, and when the stock market drops. They also tend to increase in times of great instability such as wars, when hyper-inflation is a threat. With the current economic chaos and further slide into a deep recession, many investors are beginning to look to gold as a safe haven for their wealth. This is a key reason to buy gold right now. The American monetary system, and by association much of the global monetary system which uses US dollars as its reserve currency, has some very serious problems that are just beginning to rear their heads. When the extent of these problems becomes clear, there will be a large transfer of wealth from paper fiat currencies into gold as people seek to escape from their currently overvalued slips of paper.

 Current government efforts to pump massive amounts of new money into the economy can do nothing but devalue the currency. When these dollars make their way into the system there will be high inflation. I think inflation will be further compounded by an expected rise in commodity prices since supplies decreasing. And government efforts to prop up dead companies and keep them alive as zombies will only compound our economic problems and lengthen their duration. With the unemployment rate increasing and the currency`s buying power decreasing, more and more people will seek gold as a safe haven.



Gold has been in a bull market since the start of the decade, and the keenest people bought into gold then. But I believe there are still several years left in the bull market, despite gold prices being near their highest ever level right now. if we adjust for inflation, the prices now are still nowhere near as high as during their peak in 1980. There's still a lot of room for the price to climb higher, as it will as this bull market continues.



Get into gold before the masses figure out where its price is headed. Because by then it will be too late. That will be the time to sell.



To learn more about gold visit The Gold Market .