Gold is something that has been a solid investment for as long as anyone can remember. While the price of gold will come down at times, over time it proves to be one of the most solid investments that people can make. There are basically three major factors that will affect the price of gold: market conditions, demand and market fundamentals. Educating yourself of these will let you know the best time to buy and sell gold.
The value of the U.S. dollar is something that needs to be watched very closely when investing in gold. Gold has always been a hedge against the USD and when the value of the dollar plummets, the value of gold increases. As the dollar grows stronger, the price of gold will dip back down. Being a very safe bet, gold is very appealing to large and small investors alike when the economy is failing.
There are various ways to invest in gold, but one of the most popular is to buy gold coins. One of the reasons for this is even when gold prices go down, some of the coins will hold their value due to the scarcity of the coin. This is especially true of rare or highly graded coins. Gold coins such as this may actually have a higher than market value because of how tough they are to find on the market.
In the commodities market, investors are more likely to purchase gold futures. When they do this, they are placing an order based on both the gold value now and what they are predicting that it will be in the future. While trading futures in commodities is generally very risky, gold tends to be much safer because it never experiences the massive changes in price that other commodities will experience on what seems like a regular basis.