The price of gold has hit an eight month high at $1,308.90 an ounce. The last peak was back in May when the price was $1,310 an ounce. For most of us this doesn’t mean a whole lot, but for the market it could be a bad sign.
Usually the price of gold goes up when investors don’t have faith in the direction the stock markets, or the economy in general, are going. Gold is considered a safer investment because it is based on a physical product as opposed to fiat currencies, which essentially only have value because a government says it does, or stock markets that have been known to collapse. The accuracy of this assumption is debated, though, as the gold market has been known to fluctuate as well.
The upshot is that it might not be the time to buy that gold jewelry for yourself or an upcoming Valentine’s Day gift.
