The market price of one ounce of gold just passed the $1,000 mark. The price of gold usually increases when the economy is down, and decreases as the economy recovers.
The reason gold goes up when the economy is bad is simple to explain. When people are worried that their money is not safe, they buy something that has an intrinsic value. Gold has historically been looked at as a thing of value. In the days of the ancient empires of the Aztecs and the Persians, gold was always thought of as the standard for what it means to be rich. In the 1400s, the explorers of Europe tried to build up their national wealth through finding gold in the new world. Kings and queens have always had a thirst for expanding their riches, namely through the collection of gold.
The same goes today. One ounce of gold is worth $1,000. There is not much in the world that is worth that much. If the stock market is in shambles. real estate is losing value, and banks are failing, there is only one place many people want their money. People can put gold in a safe in their house and do not have to worry about it becoming worthless. While the price does fluctuate, it is a fairly safe investment in the long term.
