Gold Investing

Investing in the gold market through coins, bullion, and buying gold mining stocks.

Gold has been in use as a form of currency since at least 500 B.C.  The fortunes of individuals as well as those of countries and governments have been measured by how much gold they own.  The fact that gold is a tangible and highly liquid (easy to trade) asset has made it a very popular investment throughout human history.  Used as jewelry, currency and as an industrial metal the demand for gold has never been higher.  Despite the best efforts of alchemists, the supply of gold is finite.  The demand may be inexhaustible but the supply isn't.  Many people retain gold as a hedge against inflation and government instability.  It would be fairly easy to hide or transport a small fortune worth of gold should the need arise.  Many investors look to gold as a hedge against  U.S. dollar.  If you earn your salary in U.S. dollars and believe that the buying power of your dollar will drop in comparison to other currencies, you could trade dollars for another currency (euros, yen, etc.) or buy gold in hopes of trading it for more of your currency in the future.  Unlike most other commodities, the price of gold is very sensitive to the sentiments of people regarding the overall stability of the world's financial institutions.  War, inflation, depression, national debt, etc. all play a role in the value of gold.  Each year approximately 3000 tons of gold are used in industry and for the making of jewelry.  About 500 tons are used for coinage and gold funds.  Some people believe that nations with developing economies like China and India will drive the demand for gold higher in the coming decades.  Chinese and Indian consumers will demand gold jewelry and will have the money to purchase gold.

Gold Investment and Gold Mining Stock Search Engine