The price of Gold Soared for the second day in a row and broke records once again. Today, the price of gold hit a record $1,880 per ounce. This just proves that the economy is getting even worse. During time of economic turmoil, the price of gold always rises because of the fear of a country’s own currency lowering in value.

If you think about it, Gold is actually pretty worthless to the average person. You can’t go to the local grocery store with a bar of gold and expect the cashier to accept the gold as currency. So why are people and institutions and even some countries buying enormous amounts of gold? ┬áThe simple answer may be that gold has been seen as something that’s constantly valuable throughout human history. This rare and shiny metal seems to always catch the eye of human beings. The value of gold is more trustworthy than a piece of paper (or cotton) in your hand with a dollar value on it.

What can we expect to see from gold in the coming future? If the economy doesn’t turn around, we could see the price of gold getting to new heights. Personally, I would not be surprised if I saw the price of Gold jump to over $2,000 an ounce in the near future. And if inflation keeps up, it will only drive the price of gold even higher. Even though the price of gold seems to be very high right now, it’s actually not very high if you take inflation into consideration.

Another outcome is that the gold bubble may burst. Just like a regular bubble, the price of gold (the gold bubble) is being inflated, and some believe that just like any bubble, it will burst and the price will come crashing down. Although that’s a possibility, we would need something very dramatic to happen in our global economy. As long as there are economic troubles, high jobless rates, war, and anything else bad that you can think of, the gold bubble will keep gaining more energy.

At this moment, the price of gold seems to only be going up. Gold has had the biggest rally this week since 2007. Risky investors may believe that this is a great time to invest in gold because the price will keep going up. That may be true, but it could also be that gold is about to hit a ceiling and it will come crashing down. If you are looking to invest in gold, I’d highly advise that you carefully think about it before you make a decision. It could be the best move you will ever make in your financial life, or it could be the worst.

The current price of gold is holding at under $1,850. It has been steadily dropping since the opening bell. We will have to see whether the gold rally continues into next week or whether some investors are using this opportunity to cash out.