Gold has long been one of the best investments that you can make and that is certainly the case right now. In recent years gold fell from favour amongst investors because it couldn't match the returns that the stock market offered. However over the last few years the stock market has declined dramatically while gold has increased. As a result there has never been a better time to invest in gold.

The main reason that we believe in investing in gold is that it is one of the few investment options you have that will always retain value. The price of gold may go down but it will never go to zero. That provides you with a great deal of protection since if prices do go down you can just hold on to it until they go back up. In reality the chances that the price of gold will go down are pretty low. There is a huge demand for gold, far more than the mines can produce. As a result we expect the price of gold to continue to go up.

The other reason that we believe in gold as an investment is that exchange rate risk has become an enormous problem for investors. The United States is currently trying to stimulate its economy by devaluing the currency. The problem is that most other countries don't want to see their currency appreciate against the US dollar as that would hurt their economies. The result is that a lot of global currencies have been losing value in recent years. If you have your investments in stocks or bonds you are exposed to the risk of losing money as a result of the decreasing value of the currency. As Bob Luton puts it: "Using gold to hedge is a great idea!".

We also like gold because of the fact that it is very hard to manipulate the price of it. Over the last few years it has become very obvious that you can't trust the stock market as far to many companies have been using questionable accounting procedures to jack up their stock price. Even in cases where the accounting is fine there are a lot of companies who are behaving in risky ways and chasing short term profits at the expense of building a long term business. In most cases investors will be left holding the bag when this inevitably blows up. With gold this is not something that you have to worry about.

In the past if you were looking for a safe place to invest your money you would put it into bonds. Unfortunately in an attempt to stimulate the economy interest rates are being held at an extremely low level. This means there is little value to investing in bonds since the rate that you get will be so low. This is why we are recommending gold, it gives you a safe investment that will provide you with a very good rate of return.