Gold has started to become an asset that is gaining even more attention from the financial and investment markets. Normally gold is correlated to the US dollar. As the value of the dollar decreases the price of buying gold coins increases, this is not necessarily the case anymore. Showing even more staying power gold has shown to also increase in value along with the US dollar. This has broken the general rule that gold is an asset that only has value in times of economic stress.

Gold Decoupling from the US Dollar

Gold’s value increasing at the same time the dollar is increasing in value offers future light to the strength of gold in an individual’s portfolio. If gold can consistently show that it has decoupled from the value of the dollar this will create significant new opportunities for gold going forward.

The general theory is a decoupling of gold from the dollar will be good for the value of gold. Important for investors is that gold can have a place in an individual’s portfolio even during times of economic growth, plus still having the aspects of being a hedge against inflation and a safe haven asset.

One key aspect that is usually good for the price of gold is economic crisis. This is typically not good for the US dollar, though when there is even greater concern in Europe the beneficiary has been the US dollar. These economic concerns are one reason why gold value has continued to increase while the dollar is too.

The dramatic implications for buying gold is that most experts still believe that if the dollar does dramatically drop in value there will a proportion increase in the price of gold delivering even more value for the yellow precious metal.

Economic Concerns Affect US Dollar

One big question is how much the concerns in Europe will enhance the value of the dollar. It is possible that if the dollar continues to become stronger on the verge of economic chaos in Europe that the price of gold will not be able to keep up. This doesn’t take into effect the United States current economic mess and quantitative easing will have.

Currently, the change in the gold market decoupling from the US dollar has more investors taking a look at buying gold coins. With different options for buying gold, physical gold in the form of gold bullion and rare gold coins, gold garners the highest focus. Important to watch if this new direction for gold continues going forward.

If gold truly does completely decouple then much of the current reasons for owning gold will have to be expanded as the value of gold will likely increase. Many experts have commented that today’s economic situations are factors that positively affect gold prices.

One item that is apparent today is that around the world many individuals are choosing gold over paper currencies. The current fears of pilling debt from the United States, Europe, and more has many people moving to physical gold.

What many people are not aware of is that gold has shown significant resiliency over the last decade. Gold currently has increased in value for 9 years in a row and currently on pace to make those 10 years by the end of 2010. For a record of ten years in a row to happen, it will need to hold the current value for gold.