While we’re not going to give a buy recommendation on gold right now we do think it’s one to watch. Nearly $300 off it’s high of earlier in the year, an ounce of gold may be the place to put your money during this possible inflationary time.

But nobody is giving any recommendations lately.  Not on stocks, nor bonds, not even on currencies. There is just wordwide uncertainty in all markets.

However, if we don’t have deflation, and in fact have a period of inflation, investors may flock to silver and gold and start buying gold bars.  Most likely though, they will start buying ETF’s like GLD and SLV.  These ETFs start buying up gold which increases the demand for gold thus raising the price.

However, the demand worldwide for gold may be reduced by lower production of all goods and services in the world, including China and India.

Either way, buying gold now, at these low prices, may still prove to be a good idea.