Spot gold rose to $1,007.45 an ounce today, a sure sign that investors are worried about inflation and general overall weakness in the economy. It has become quite clear to all but the most die-hard Obama supporters that his massive stimulus expenditures have accomplished nothing except to balloon the deficit to an unprecedented level, spurring many investors to purchase gold in lieu of more traditional investments.
Gold has been a popular investment vehicle for thousands of years, and it has served as the basic form of currency for many civilizations throughout human history. And regardless of how bad a particular economic climate might have gotten, it never became worthless – not even once. With all the money the U.S. government and other nations are injecting into the world economy, it’s pretty much a given that inflation will come roaring back with a vengeance before long. And if it does, who knows how high gold will go before things get better?