Good time to buy in GLD10US$

StreetTracks Gold shares fell by almost 2 dollars today to close at $88.84 as the US Dollar strengthen against the EURO, reducing the demand for the precious metal as a hedge against further drop in the US dollar. GLD shows strong short term support below the US$89 mark. If GLD was to further decline in tomorrow trading, it would present great opportunity for buying in, even for the short term

Why gold is a good investment?

1)Gold always rises in times of uncertainty. It has historically been the best store of value. Be it war, widespread inflation, depression or the likelihood of the above mentioned,demand for gold will rise
2) The US dollar is the reserve currency and many countries uses the US Dollar to underpin the issue of their own currency. With the fall of the US dollar to new low levels, the EURO and GOLD bullion are much better choices.

3)Gold should do well in extreme bear markets. Silver increased in value more than double from 1932 to 1936 during the Great Depression (the price of gold was fixed by the government). The next long bear market was 1968-1980. Silver rose from around $2 in 1968 to a peak near $50 in 1980