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The State of Gold

|Includes: Randgold Resources Limited (GOLD)

If you are afraid to invest in stocks during shaky economic times, gold might be a good solution. Gold has been shown to jump up in value when international stocks are on the decline. This is because, as a precious metal, gold’s demand and thus its value is usually in high demands when the rest of the world’s assets are uncertain.

Additionally, the price of gold has steadily increased over the years. Like any other asset, the price does not move linearly, but the general trend of gold is upward. And with the recent decrease in futures’ prices for gold, now can be your chance to jump head first into the market. For example, a gold future contract with an expiration date in June 2015 is currently at $1,710—below the price set forth today by traders. If the market continues to rise, this could present a great way to make a lot of money with very little risk. The market is currently reacting to the possible solution to the European debt crisis, thus taking future prices to an artificial low.

Gold is limited in supply and has universal demand, thus ensuring that gold prices will continue to move upward into the distant. Aside from futures trading and binary options trading one popular way to hedge your investment is to actually hold gold. This requires a bit more work and maintenance on your behalf, but this is one way to guarantee that you have a supply of the precious metal on hand for the worst of economic times.