1.\u00c2\u00a0Hedge against inflation
\n2.\u00c2\u00a0Hedge against a collapse of the U.S. Dollar
\n3.\u00c2\u00a0Bull Market
\n4.\u00c2\u00a0Diversification
\n5.\u00c2\u00a0Store of Value<\/p>\n
Probably the number one reason why people are investing in gold today is due to a fear of inflation<\/a>.\u00c2\u00a0 Central Banks around the world have turned on the money spigots and began flooding banking markets around the world with liquidity.\u00c2\u00a0 This has scared many people and rightfully so.\u00c2\u00a0 Once all of this liquidity hits the hands of the people we are in for a serious bought of inflation, maybe even hyperinflation.\u00c2\u00a0 I have read some statistics that have said that the Federal Reserve<\/a> (which by the way is a private bank) had doubled the money supply in a year\u00e2\u20ac\u2122s time.\u00c2\u00a0 It will be difficult for the Fed to draw back in all of that liquidity.\u00c2\u00a0 Although they want you to believe it will be easy for them.\u00c2\u00a0 When inflation hits gold prices will continue to rise.<\/p>\n Some people are even more concerned that the U.S. dollar will not only hyper inflate, but that it will eventually collapse and become worthless paper.\u00c2\u00a0 We have seen this happen many times throughout history, the most recent being Zimbabwe.\u00c2\u00a0 Their currency was declared dead in April of 2009.\u00c2\u00a0 Citizens of Zimbabwe began digging and panning for gold in order to scrape together enough grams of gold to be able to provide for their families.\u00c2\u00a0 Gold goes a long way under these circumstances.<\/p>\n