Gold is flying high. These days when most of the other kind of investments may seem scary because of the risks that are associated with the investments, investment in Gold seems to be the best option for hundreds and thousands of people all around the world. The cost of buying Gold has been on the rise over the last few years. Though the yellow metal was having a roller coaster ride before that, the last few months have seen the metal going only one way and that is up.

Gold seems to be one of the best investment options these days and the reason for this is that many people use it as a hedge against other kinds of investments. This article lists some of the reasons for you to use Gold as an investment option.

1. Hedge:

Many fund managers also buy Gold because; it can hedge the fall in the many other markets. There can be times when the stock markets are unpredictable and so may be the case of the other markets like the commodity markets and also the oil prices. All these can have very great falls and may cause the value of your investment to have a very steep fall. On the other hand, the investment in Gold does not lose its value as much (if you compare the fall of the other markets to the Gold prices historically). This hedge has made many people to buy Gold making the prices to rise unabated.

2. Asian people:

The more important reason for the sudden and alarming increase in the prices of Gold is the fact that the people of Asia, who buy the Gold as jewelry, are buying the metal in huge quantities. The fact is that they have realized that the prices of Gold may not be coming down in the next few years and this has made them to try and hoard Gold ion huge quantities. This has made them to buy the precious metal in spite of the high price and this has further driven the price of Gold higher.

3. Nations investing in Gold:

Other than the investors, individuals, the central banks of many of the developed as well as the developing nations of the world have started hoarding Gold too because of the intrinsic value of the metal. From time immemorial, Gold has been the metal that has been sought after and it is still continuing. This has made the banks to invest a major chunk of their money in Gold as the prices of Gold do not really depend on factors like currency fluctuations and any other factors. The Gold prices are going through the roof because of these factors.

These are the main reasons for Gold being considered to be one of the best investment options available for the investors around the world. As the economic crisis in Europe increases, the markets around the world are seeing a sea of Red and Gold is a safe haven in these troubling times.

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