Gold Rushed: Investing in Gold

Should you buy gold while a lot of analysts are calling the recent high point a peak, a bubble and no chance of getting above $1000 again? While we can’t really say what you personally should do, that depends on your personal finance situation. We can give you our opinions.

Look at it this way. Commodities are at all time highs. The world is “expanding” with globilization. Money is being made by people who have never seen a $100 in their life before let alone thousands. With that money comes the ability to buy items like jewelry, computers, and other non-essential needs (although computers are becoming increasingly essential.)

Oil is rising. Although the bubble may burst, this is highly unlikely considering that the whole world, as mentioned, is expanding and the need for oil in China and India is helping drive costs. If oil goes up, other commodities rise, the need demand for precious metals doesn’t dwindle, why would it not climb?

Inflation, Inflation, Inflation. Inflation is driving up the cost of a lot of goods. Do you really think the price of milk or a candy bar is going back down? Although I realize that these aren’t perfect comparisons you get the idea. The value of a dollar is going down, prices of tangible goods are going up. If dollars are being produced more and more to cover our nation, is the government going to start pulling more twenties out of circulation once the economy recovers? Probably not.

There are probably a bunch more reasons why investing in gold is a good idea, even at this peak. But then again, everyone’s personal finance story is different. So choose where you money goes wisely. Gold may not be the best investment for everyone.