So gold and other commodities are all the rage right now. Jim Rogers says gold is going to $2000, others say it’ll hit $3000, others still say it is over priced.

Who are you to believe?

Well you don’t have to believe us, but when we started this blog gold was below $900. That’s right, well below $900. Now it’s over $1000 and continues to climb. The dollar is weak, which has historically meant gold is a good buy along with other precious metals like silver and platinum. The stock market however, has pushed upwards for the past 2 months amid the weakening dollar, increase in precious metals and uncertainty in the economic outlook of the world.

So where do you invest.

Well, if you’re look at gold, you may want to look into the ETF GLD. GLD is an ETF that is freely traded as a stock and holds all the same value as owning a tenth of an ounce of gold. That’s cause it’s backed by the value of gold. If the fund needs more shares to trade, it buys more gold. The price of the fund tracks the price of gold by a tenth, pretty consistently.

By putting your money into this fund you don’t have to buy gold bullion directly and find a place to store these. If you have to pay to store it, and pay a premium to buy it, it doesn’t make sense to buy it that way. Buy the fund if you need to. Or buy shares in a company that mines or processes gold. But thats a whole nother story.