The price of gold continues to hover at record levels after reaching an all-time high of $1,245.40 an ounce on May 11.
Commentators believe that the recent volatility of the stock market is prompting investors to flee to the safety of precious metals, driving their prices up.
In addition, Europe’s ongoing debt crisisand the nearly $1 trillion rescue packagehave been stoking inflation fears and doubts about the pace of global economic recovery.
While high gold prices may appear to make it less attractive for new investors to convert their currency into precious metals, some analystssuch as Jeffrey Nichols, managing director of American Precious Metals Advisors and senior economic adviser to Rosland Capitalare predicting the prices will continue their upward trend, hitting $1,500 an ounce by the end of 2010, quoted by CNN.
For those who would like to make the investment, TheStreet.com, an investors’ website, says physical gold can be bought at various prices and in various forms, including coins, bars and jewelry. It says American Buffalo, American Eagle and St. Gaudens are among the most popular gold coins.
Moreover, gold can be stored in bank safety deposit boxes or at home. Some companies allow investors to store gold with them as well as trade the metal on the market.