If you are looking to invest in gold right now then you need to keep a close eye on gold prices. A lot of money has gone into gold in recent years and this investment has paid off as gold prices reached a peak. While the rest of the financial world struggled, the benefit of investing in gold was the fact that you actually had a physical commodity rather than the theoretical paper property of money that could be wiped out in a very short amount of time.
Gold prices now are still at an all time high. The rise in gold prices started about 5 years ago and and has escalated to a level not seen before. Prior to the 5 year rise seen recently the prices were pretty static for the 20 years before that.
The reason for the increase in gold prices in the last 5 years has been debated a lot in the press. Generally it is understood that people buy gold for it’s value as a tradable commodity and the fact that it is a good thing to invest in in times of uncertain inflation. Gold will always have value and be tradable so may be considered a safer investment than other things.
So the question you need to ask if you are planning on investing in gold is, are prices going to rise any higher and are you looking for long term or short term gains? What you need to decide is what you think the ceiling for gold prices might be. At the end of the day prices depend on supply and demand and what people are willing to buy and sell for and gold prices are no different.