Why Gold Can Be the Best Investment?

The price of gold is rising: it started at the beginning of the year at $880, and by the summer it was well above $900, continuing to appreciate. The prices of gold can be volatile at times, but they will continue to rise. Historically, at times of uncertainty, gold is the best thing to keep your money in. The economic perspectives are optimistic, but very few people see with their own eyes the economy getting better. There are voices that claim that the optimistic evaluations had been fueled by government organizations, banks and generally vested interests.


There are also emotional factors that contributed to the rise of gold prices: small investors, who fear of losing their savings, know gold is the perfect asset to buy. Markets started booming again, but there is no guarantee this is not a secondary bubble. The fear of worsening economy is one of the main reason gold prices are getting higher.

Gold prices also continue to grow as the dollar currency fluctuates. Interest rates are at historical low points, and the possibility that inflation can shoot up, currencies can collapse and gold to become the new global currency also drive gold prices up.

Many experts believe that the price of gold had been suppressed, and despite of this, its price continues to rise. There is the question how high could gold price be if there was no suppression? Suppression of price decreases production which leads to shortage. This can be also an explanation why gold price is rising.

Smaller, long-term investors are turning away from risk, and begin to see gold ETFS and shares as the ideal investment opportunity. Gold shares have been growing slowly, but as investors will see that gold passes $1000 level and stays there, they will be more confident and buy mining shares again.