But the iShares trust GLD has been following right along lock step with gold and the precious metal doesn’t show signs of slowing down anytime soon. With the worlds currencies in constant state of flux, ie Euro vs US Dollar vs Yen, who knows where currency trading and forex gurus are going to stand.

GLD on the otherhand keeps you in the world of trading the precious metal gold while still have the protection of a fund. Now that protection isn’t from your investment, gold can always tank, but at least it will protect you from all the extra taxes that buying and selling real gold bullion can have. Investing in GLD is fast becomming the only way to invest in gold.

But even in all this up and down motion iShares gold trust NYSE:GLD continues it’s move towards the highs of the last year of $122+. Will it see it? That’s the question on everyones mind as Apple NASDAQ:AAPL takes over Microsoft NASDAQ:MSFT in terms of largest tech company in the world.

Well, why wouldn’t gold continue it’s upward trend? The markets are anywhere from stable, and with North Korea and South Korea posturing back and forth, that stability seems a long way off. The markets should continue to jump around and if they do, you’ll see some difficult times with equities make precious metals the place to be. Inventories aren’t going to explode like some analysts say.

The reason we think this, because of GLD. All that inventoried gold has a nice cushion with a trust like GLD that needs to buy gold to make it last. We say look at this one hard to continue its climb.

Or are they?

The Washington Post has a great article on why some investors are fearing the sudden rise in gold, and also why some investors think $1000 is just the beginning. Inflation on the rise, the dollar weakening and a market that isn’t quite sure why it’s almost back at a DOW of 10,000. That’s what has investors scratching their heads and disagreeing.

One things for certain, gold and ETFs like GLD could still be good buys if we continue to see the fed printing money, and worldwide banks scooping up gold as a hedge to the weakening dollar.

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.

Like IAU and SLV, GLD buys and stores gold and allows investors to buy a share of the gold it owns. The price basically tracks the price of gold per ounce at about 1/10th the value of an ounce of gold. Fees are taken off for running the fund, which is the reason for not tracking the price exactly.

Currently, the precious metals market has been taking off as investors try and find a safer place to put their money than the stock market. If you want to buy gold, rather than buy gold bullion, you can purchase gold through the ETF and take advantage of long term capital gains tax benefits. If you buy gold bars or coins you’ll need to pay full capital gains taxes.

These are just some of the advantages that buying gold through ETFs such as IAU and GLD can offer.