Why Gold Holds Value Over Time

The main reason that gold does not lose value over time is that the amount of gold is finite. The current price of gold has to do with, among other things, how much of it is mined.

As the dollar goes up or down, gold also moves with it. Inflation is a bad thing for the value of the dollar and so people try to protect themselves by investing in gold.



If you think that their are tough times ahead economically, now is the time for you to invest in gold. When the stock market goes down and stock market investing makes you cautious, that is time to buy gold. Gold will hold its value when everything else is going down.

It is probably not wise to put all your investment money into investing in gold. You should pick a percentage that you feel comfortable with such as 10% or 20%. Of course if you feel you really want to be safe and you feel that really tough times are ahead, you might choose to make more of an investment in gold. Whatever you do, you can rest assured that you will will be safe as the current price of gold will in all likelyhood remain constant.