Gold can be a sound investment because its supply is relatively constant, unlike that of securities and currencies. That’s because gold mining doesn’t increase the supply of gold by much on a yearly basis. An ounce of gold today can buy pretty much the same amount of goods as it did 25 or 50 years back. In contrast, the purchasing power of the US dollar has reduced significantly. Typically, when the dollar is weak, the price of gold moves up. For this reason, investors use gold as a hedge against inflation. If you too want to insulate yourself from the effects of inflation, consider investing in gold. But how does ... (full story)