My Financial Tips

The price of gold has touched $1,000 an ounce for the first time in six months. Is it a sign that investors feel the recession is over though? It could be seen however as a way that investors are safeguarding their investments against recession.

Gold is seen as an attractive investment in times of inflation, its value has risen 13.6% in the past year. This could be viewed two ways. Optimism would have us see it as a sign of recovery, getting out of the recession.

If you see the glass as half full, buying gold bullion coins coins now will be cheaper than when their value rises too high. You will be able to sell at a higher price. Or, you could sell any gold bullion coins you have now and get a good price for them.

However, you may be a little more pessimistic, and see gold as a wealth protector in which case its high value might indicate people are still worried about the recession. This can be seen as the US dollar which normally moves in the opposite direction to gold, has been declining during that same time.

Uncertainty on the part of businesses and traders has contributed to higher prices. Governments use their gold reserves as protection against drops in their currency, gold is a safe way to store your money.

How interest rates are going to change is one of the questions financers are asking. Gold is being hoarded by big traders.

In March 2008 gold reached an all time record high of $1032.The value of gold reached a record high of $1032 in march 2008. The price of gold has not reached $1000 since March 2009.

Troy ounces is the measurement used to measure gold. One ounce is equal to 31.1035 grams or 480 grains. Avoirdupois ounces are used as common measurement in the UK and US, one troy ounce is 1.09711 avoirdupois ounces.