If you watch the precious metal market (as I do) you might have read this Wall Street Journal article that the gold market in New York went up this week. Or maybe you just hear all those cash for gold advertisements flooding airwaves lately. Perhaps it has you wondering – why is the gold market on the rise?
Why is Cash for Gold on the Rise?
The issue has to do with our economic recession, and the fact that people are unsure what the future holds. Some economists argue that we’re in store for an inflationary period which will contribute to the devaluing of our currency. In times of inflation, even though money devalues, the value of the gold market does not fluctuate. Inflation has no effect on non-monetary items like gold and real estate, which could be used to secure goods if currency is unavailable.