Reasons To Own Gold (1 of 9) Reasons To Own Gold (3 of 9)

Reasons To Own Gold (2 of 9)

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Weakness of the U.S. Dollar: Although the U.S. dollar is one of the world's most important reserve currencies, when the value of the dollar falls against other currencies as it did between 1998 and 2008, this often prompts people to flock to the security of gold, which raises gold prices. The price of gold nearly tripled between 1998 and 2008, reaching the $1,000-an-ounce milestone in early 2008. The decline in the U.S. dollar occurred for a number of reasons, including the country's large budget and trade deficits and a large increase in the money supply.
Source: http://www.investopedia.com/articles/basics/08/reasons-to-own-gold.asp; http://www.investinganswers.citymaker.com/Investing_Answers.html
Tags: US dollar, gold