Gold Rush 2010

The past few days had the world witnessing the price of gold hitting waves of record high at USD$1242/OZ (May 13 2010). This surge was caused by the debt incurred by Portugal, Italy, Greece and Spain AKA PIGS and with bailouts from the European Central Bank (ECB) and International Monetary Funds (IMF).

The last time gold hit a high was during October where it was USD$1222/oz. I realise that whenever there's a bailout package for some regions or country, Gold will always rise. The reason is mainly because gold act as a contingency currency and as a hedge against currency depreciation and inflation.

This trend of rising gold price will no doubt continue to hit new highs in years to come. Reason being, The price of goods and foods will always rise as inflation is a need and for the good of a nation economy. Some economists speculated that gold might hit a high of at least USD1500/oz at year end.

So people might ask questions like; Should i start putting my $$ in gold now?

I recommend if you want to, you should have a long term plan. Although its almost guaranteed that gold will continue to rise even to a higher tipping point in the future. No one knows when is the next dip nor the next surge will be. Long term investment is the best bet to buying gold.