How to Measure the Price of Gold
Precious metals are a wonderful investment in a rocky financial market, not least because their solid returns will keep your money safe and growing, and you can count on gold and silver to act as a hedge against inflation. The intrinsic value of gold and silver preserves your investment, because precious metals do not operate on the same classic supply and demand curve as other commodities.
There is a reason that gold in particular acts as a great hedge against inflation, even while the price of gold changes frequently. The inherent value of gold stays the same, regardless of the current price of gold. This is for the simple reason that gold is tied to the dollar in a very real, very basic way. Once you understand this relationship, it is easy to predict what the price of gold will be at any given moment. When the economy is strong, gold prices are at their lowest. Experts will tell that a strong economy is the perfect time to buy gold, because you can buy more of it at a bargain price. When the dollar weakens, the price of gold goes up. In the last three years, we have seen gold prices at their highest points ever. Read more…

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