Hitting New Highs

Posted by - Admin / November 23rd, 2009

The Federal Reserve has, under the past year or so, done everything in its power to undermine the value of the dollar. Investors have sought a refuge from the plummeting value of the greenback and have found that in various commodities or overseas investments–but the biggest winner has been gold. Three years ago if you suggested gold would hit $1000 per ounce, you would be laughed out of the building. Now, it seems as if every other day gold breaks a new record. The newest record, broken just today, is $1171 per ounce.

This isn’t because of a new found love for gold–gold has always been beloved by man and woman as a pretty and sparkly substance. Gold is being bought up because it has historically served as an alternative to the dollar whenever the dollar is in a weakened condition. This allows them to protect their assets from inflation because gold remains roughly equal with only a slight inflation. The pricey commodity is up 12% just this month, an increase that is matched only by the dollar’s precipitous decline.