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.

So what is the common investor to do?

If you ask us, we would say buy gold. Why? Inflation is here, demand is up, and gold has dropped way off it’s high from a few months ago. Being able to invest in these times might be a great idea to even the most timid investors. And you don’t have to go spending thousands on gold bullion. You can buy just an ETF and get in on the action like that.

As we’ve suggested in the past you can buy a gold ETF like IAU from iShares, a great ETF company that provides all sorts of sector ETFs like precious metals and other commodities.

Once again, the price of $870 or so per ounce seems like a great price to buy at.

Gold, for the second straight day, fell $20 plus per ounce in trading. Gold stands at less than $870 per ounce while just Friday it closed at over $900. The Fed signals which have been making gold prices bounce around are at it again. Today with talks of a fed rate hike on the horizon, gold was not good for those invested.

However, those looking to purchase gold may be able to buy gold at a quite a discount to recent highs. Those willing to risk more possible pullbacks could be able to get into gold now and wait for the next run-up. Although we can’t be sure there will be another precious metals rally, the erratic market would tend to lend to these types of spikes in safer investments like gold.

Gold is now back over $900 an ounce, and as analysts continue to predict oil heading higher, gold may still be a great buy for those looking to get into a precious metal that will continue to be in high demand for years to come.

We report all too often on this and our other precious metals network blogs that this is a great time to buy precious metals like gold and silver. Why, because inflation is here, oil is rising, and the world economy is growing at a faster pace than ever before. Buying into metals that provide industrial needs as well as ornamental products is most likely going to prove to be a great move.

The Feds may not be able to affect this precious metal as well as some analysts thought.

Gold, which is one of those safe havens for dollars, especially when the dollar is weak as it is now, may suffer at the hands no more rate cuts. However, this might only be temporary. Oil is continuing to rise sparking talk of a recession and everyone is feeling the pain of inflation and rising food prices. So why won’t gold follow suit.

Although this is a blog on gold, you have to look at as a commodity slice of the whole market. Prices are going up on all commodities because there is a rising demand for all commodities while there isn’t as much a supply. This means higher prices.

The FED may be trying to curb inflation but will they kill golds rise? I’m guessing not. Gold may be at great price to buy right now.

We’ve already seen the price of gold make huge strides toward $1000 per ounce and now with gas in the US creeping over $4 per gallon, the price of gold could follow up just the same. A new article, on the front page of money.com talks about .

Now may be the best time to buy into the gold rush before it happens. One of the easiest ways to get into that is to buy a gold etf like GLD. It’s easy and not as expensive as buying and storing gold bullion.

Then the stock market came around, the housing bust didn’t seem like such a bust anymore and the world wasn’t so sour on the dollar. The price of gold quickly dropped below $900 per ounce. And it has stayed there ever since, bouncing every once in a while but then profit taking takes over to bring it back down.

Is the reason for the drop a good reason? Not sure, but the dollar is still down, the market isn’t turned around that much, and oil is still rising rising rising. If oil is on it’s way up and inflation seems like its going to be the tale of the summer, why the pull back in gold?

If anything, I would think the price of gold would continue to rise, but we shall see.

Picture this. You have gold bullions worth millions. Wouldn’t you be worried about the safety of your hard-earned fortune? You may spend sleepless nights over the security of your gold. In case you need money, selling them will not be very easy given that you will need to transact in bullions and not in a smaller unit. Wouldn’t it be easier dealing with some papers than enormous bars of the precious metal?

More and more people are being inclined towards investing in gold mining stocks than gold bullions. This article will discuss why you should buy gold mining stocks than gold bullions.

It is important that you consider certain factors before investing. You need thorough knowledge and understanding of mining to invest in gold mining stocks. Mining risks account for more volatility in the prices of stocks as compared to that of its physical counterpart, the gold bullion.

Easy trading: Wise investors usually hold a balanced portfolio of gold mining stocks and gold bullions, thus taking a calculated approach to gold investment. However, when it comes to the ease of gold trading, the stocks hold a much stronger place as against gold bullions. Gold mining stocks enable easy buying and selling in the market.

Reduced costs: Holding gold bullions will require you to spend a considerable sum in insuring the precious metal. Having gold stocks, on the other hand, does away with this high cost factor.

Fewer complications: Investing in gold mining stocks makes life simpler for you in the sense that you do not need to worry about the quality of gold involved. You will no longer have to test the purity of gold you own because your gold will now be in stocks not in bullions.

No storage issues: With gold bullions, you always have to worry about safe and secure storage for your gold. You also need to spend a large amount of money for the safety and storage of your gold. Investing in gold mining stocks does away with your storage concerns.

Easier transactions: While holding gold bullions makes it difficult to transact in any denomination, you can transact in the smallest unit of gold with gold mining stocks.

Easier resale: The resale price of gold bullions is usually less. Gold mining stocks do not suffer from this limitation.

Experts believe that an investment in gold mining stocks will reap higher returns than an equivalent investment in tangible gold. Though risky, gold mining stocks are considered to be worth investing in. It has been observed that the profits of mining companies are increasing at a more rapid pace than the prices of the products they are mining.

South Africa, the United States, and Australia are the three largest gold-producers countries. For decades,
South Africa has been the largest producer of gold. In 1970, the world owed two-thirds of its gold production to South Africa. In 2006, the gold production of the world was estimated to be 2469 metric tons, with South Africa, the United States, and Australia contributing 11.0%, 10.5%, and 10.2% gold respectively.

South Africa has been the largest producer of gold for more than a century. However, the gold production records last year brought China up to the first place. China has produced 276 metric tons of gold in 2007, thus contributing a significant 11.3% gold to the world’s production. South Africa produced 272 metric tons, followed by the United States with an estimated production of 255 metric tons and Australia with 251 metric tons.

The other gold producing nations apart from these countries are Canada, Peru, Russia, Indonesia, Tanzania, India, and Japan.

South Africa has been considered the country with the largest gold reserves in the world. It is said to have fifty percent of the world’s gold reserves. The gold mines at Boksburg and Carletonville are the biggest mines in the country and the deepest in the world. AngloGold Ashanti Limited and Gold Fields Limited are two of the big mining companies in the country.

Thanks to extensive foreign aid, China has been able to become the largest gold producer even with only seven percent of the world’s gold reserves. China’s CNGGC (China National Gold Group Corporation) is the biggest mining company in the country. The nation’s other mining companies include Zhongji Gold, Fujian Zijin Mining Industry Company, Lingbao Gold Company, and Zhaojin Mining Industry Company.

Most of the United States gold comes from Nevada, a state in the west of the country. The state is known for its open pit mines. The other gold producing states are Colorado, Alaska, Arizona, Michigan, Idaho, Georgia, California, Montana, Virginia, North Carolina, South Carolina, Tennessee, Pennsylvania, and New Mexico. The big mining companies in the country include Newmont Mining Corporation, AngloGold Ashanti, Barrick Goldstrike Mines Inc. Minera, Coeur d’Alene Mines Corporation, Kinross Gold Corporation, and Royal Gold, Inc.

Australia’s share in the world’s gold production started peaking up after the 1980s. The major gold mines in Australia are Super Pit and Sons of Gwalia mines in Western Australia, Cadia and Timbarra mines in New South Wales, Olympic Dam and Challenger mines in South Australia, Lasseter’s mine in central Australia, and Henty Gold Mine in Tasmania. The major gold mining companies in the country are Barrick Gold of Australia Limited and Monarch Gold Mining.

The 2007 gold production statistics estimate that Indonesia contributed 7.0% to the world’s total production of gold, closely followed by Peru with 6.9% and Russia with 6.2%. Canada produced 93 metric tons of gold, contributing 3.8% to the world’s gold. Other countries are estimated to have contributed 32.9% of the world’s gold.

Properties of Gold

Gold is a good conductor of electricity and heat. An important property of gold is that it is resistant to corrosion: it does not react with air or any reagents.

Gold has the metallic properties of being malleable and ductile. The property of malleability lets gold get hammered into thin sheets without breaking. Its ductility allows gold to be drawn into thin fires. Gold can be melted and stored in different shapes. It also has the ability to mix with different metals and become alloys.

Applications of Gold

Jewelry: Gold has always been thought of as the pure metal. The brilliant yellow and the excellent luster have drawn people towards it for centuries. More than three-quarters of the world’s gold is consumed as jewelry. Gold’s ductile property makes it an excellent choice for casting jewelry. Gold combines excellently with silver, copper, platinum, aluminum, nickel, zinc, palladium, and cadmium to deliver a variety of differently-colored alloys.

Electronics: It may come as a surprise to know that the most precious ornamental metal also finds its use in electronic equipments, thanks to its electrical conductivity and resistance to corrosion. A certain amount of gold has invaded the information technology and electronics industry, and rightly so. Gold can be traced in your daily electronic and digital equipment like cell phones, computers, calculators, televisions, credit cards, and digital equipments. Gold comes to the rescue when handling very small voltages. You would argue why silver and copper cannot be used in such devices. Here, gold scores a brownie point because of its resistance to corrosion.

Engineering: Gold is used in numerous engineering applications as a lubricant. Gold is used in thermocouples and potentiometers. Gold is also used in architecture as glazing material for buildings; it helps in keeping the buildings well heated and ventilated. Gold has also found limited use in industrial brazing.

Medicine: From being present in surgical instruments to providing diagnostic support and cure in certain diseases, gold has gold has found some place in medicine. Certain compounds and isotopes of gold are used in the treatment of rheumatoid arthritis, Lagophthalmos, and some cancers.

Dentistry: Being biocompatible and chemically inert, gold serves as a great solution when the human body’s need for a metal in the mouth! Gold and its aloys are safe for the human body, making them the preferred choice for filling in cavities, inlays, crowns, and bridges.

Miscellaneous: Gold also finds its use in photography as a printing medium. Though tasteless, Gold has now entered the gastronomical zone, being served in food. In countries like Japan, tea, deserts and cocktails are now being served with gold dust and flakes! Apart from being ornamental, gold is being used in the beauty industry to aid beauty. Gold facials have gained popularity across nations. Some cosmetic companies are adding gold in their products. The ductility of gold has founds its use in embroidery as well.