Much like any other precious metal, Gold is also an investment medium. An investment in Gold can mean many things and can help weather the storm of a recession.
Don’t be fooled into thinking that the price of Gold never goes down. It does. Just not as often as the price of your current favorite corporate stock. The graph at left shows the price of gold over the last 30 years.
As you can see, after hitting a peak of 615 in 1980, the price of Gold dropped down to a rather steady 350-420 an ounce. A quick drop down beginning in 1996 ended in 2001 and now the price of gold is over 600 an ounce again.
It goes without saying that investing in Gold can be fairly lucrative. Swings of several hundred dollars over just a few years could make for a tidy profit. It also makes a fairly good long term investment.
So, how do you invest in Gold? There are several ways. You can actually buy Gold and keep it in a safe deposit box. There are also several other ways that include buying stock in gold producing companies, and even stock in Gold itself.
The National Mining Association has an excellent resource on investing in Gold. There’s a table of the historic gold price that dates back to 1833, and a very informative section on ways to invest in gold.