The value of gold is at an all-time high, which is in stark contrast to the economic conditions and stock market the past several years. Many people are looking for a good investment in turbulent times. If you have a medium to long-term horizon, now is a good time to think about gold investments. There will definitely be plenty of price fluctuation and volatility along the way, but the long-term fundamentals for gold look attractive right now. Governments across the globe are struggling to deal with crushing debt, and will be under immense pressure to continue borrowing and printing money with the aid of their respective central banks to pay their bills. This is always positive for hard assets; including gold, silver, oil, land, etc. As they print these extra dollars, there is an increasing amount of money chasing the same goods and services, which leads to higher prices.
This benefits many commodities like gold; which are traded globally and priced in dollars. So as more money is printed, reducing the value of each dollar, many people will flock to gold as a store of value for their wealth. Gold has also historically been used as an alternative currency, to paper money freely created by governments with nothing backing it. Gold is not created and controlled by any government, so investors can protect their money when irresponsible politicians and bureaucrats print up huge amounts of new money to pay their debts; diluting the dollar supply that currently exists. So as you can see, gold is the perfect hedge against the falling value of the dollar if we continue to see turbulence in our economic markets.
