With the awful economy and the stock market performing so poorly, one would think that the current price of gold would be going up. Usually, people buy gold as a hedge against hard times as gold is one asset that can be counted on to never go to zero. Gold is seen as an insurance policy in case things get dicey and that they are right now.

What are the reasons why gold has not gone up during this time period? It might be partly because many hedge fund managers have had to cash in their gold positions to pay off all the other failing investments that are in people’s portfolios. Folks have been selling stocks at record paces over the last 2 years and these hedge fund managers need to get money from somewhere. This has forced them to cash in some or all of their good investments such as gold.

Gold has held up pretty well during this time period but it just hasn’t gone up like you might have thought it would. Will it continue to hover around the same price of will the massive amount of new dollars the treasury is going to pump into the system make gold start to rise again? So many companies are getting bailouts from the US government that one has to wonder how much the dollar is going to be worth. Is it time to start buying gold?

Gold might be a smart place to put some of your money with all the bad things happening around the world. Stocks are going up and down wildly every day and interest rates are practically at zero. This doesn’t leave one with many choices of where to safely invest money. It seems the smart place to be is in any conservative investment and gold might be the ticket. Over thousands of years gold has always maintained its value and so gold is a conservative investment you can count on. Of course gold is not for everyone and you should probably onlly put some of your money in it.

You can be confident that the price of gold will not go to zero and you can look through history to see that this will continue to be true. Gold can always be counted on for value and it is always good to have some of your money in an asset that can be counted on. The future is unknown and these bad economic times might continue. Gold could be the right investment choice for the remainder of 2009.