Why does gold make a good investment?

Gold has had an amazing year, in terms of price rising, reaching high levels which have never been recorded. Many investors continue to buy gold excessively, but the prediction is that the precious metal couldn't continue to gain value in such an impressive manner for long. Some consider investing in silver, diamonds, natural gas, platinum, etc. All options are worth considering, though I think that it will take a while before gold prices stabilize. It's true that in recent months gold prices haven't rose in the same rate as in the beginning of 2009, but this doesn't mean that it's not a good investment anymore, and is rather less rewarding than before.

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Look at the value of gold in recent days, getting very close to a thousand dollars per ounce (and even surpassing that line in mid Feb 09). The economic recession is still projecting many aspects of our lives, and the threat of global inflation is very visible. Many economy experts state that gold might be the investment that would reduce "casualties" in this economic storm. Although government will continue to think of strategies that involve local currencies, private investores find gold a very profitable asset. The weaker the stock market is, the weaker the dollar is, gold would probably become stronger and possess a more significant role in the world's economy.

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Throughout modern history, investors have managed to protect themselves from inflation by purchasing gold, which value has more or less always been on the rise. Politicians have always preferred that central banks manage the world's major currencies, as they could create money out of nothing and hope to expand, though economic trends in the last century prove that gold makes the best investment. Local currencies have always been subject to currency market fluctuations and government policies. Every time money is printed, the dollars one possesses are less valuable.

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