Why do people buy gold?

Gold is scars that is why is value is high and still the vprices are rising, That is why the women buy gold not only by its atractiveness but for its value aswell. In many other cultures it is the sign of riches and good luck to buy gold.

Most people buy gold as an investment especially when they see it gaining in value as much as it has over the last decade or so. They see it as a safe way to invest their money thinking that with the way the economy is going, gold will hold its value or keep on increasing in value over the years. Gold can be a tricky commodity as there are no guarantees with it and it can just as quickly start to lose value on the world market if economies start to improve making currancies more valuable and interest rates rise. People and companies tend to buy gold when economies faulter and governments go into debt making national currancies fall in value. When there is more of a demand for gold its value rises making it a better investment than bonds, CD's, and mutual funds, which all suffer from low earnings and higher risks during hard times. If you have the money to invest then it can be a good idea to place some of it in precious metals such as buying gold coins or bullion. You should diversify your savings and not place all your eggs in one basket when investing.

Gold is purchased to protect you against inflation and governments who are unable to run an economy.