Gold in 2009.

Gold is one of the surest forms of investment. It is a form of investment which you can retain as tangible assets and then sell it at a later stage. The prediction is that gold will climb into 4 digits in the first quarter of the year and remain that way for the rest of the year. This holds true for the American Market. The demand for investment in Gold leapt at a blistering pace in 2008. Asia is the No. 1 market for gold. It is predicted that in 2009 also the demand for gold will remain very high.

However in the US and Europe in 2009 the gold investments will reduce. The premiums charged have increased. This holds true for gold coins as well as small bars. You would expect that gold will be a great investment in 2009. The U.S. dollar is predicted to remain under pressure. This is because the Federal Reserve will assume a more accommodative monetary policy. This is in comparison to the other key central banks. Gold still continues to be a safe asset.

Although the rate of returns that gold provides has slowed down, it has shown relatively lesser percentage decreases compared to the other assets. Where other investments have shown extreme volatility in the current financial crisis, gold remains to be a stable and safe option in 2009. Some predict that Gold is the Trade of the Year in 2009. Gold still manages to retain itself at the mean.

Gold still remains the best hedge against inflation. Gold is also a very attractive investment in the current financial crises.

In the current market scenario, you should remain neutral on Gold investments. You should continue to build on it in your portfolio. This is till the time when the markets stabilize a bit. Now comes the question of investing in gold.

Other than jewelry, you can also invest in Gold ETFs (Exchange Traded Fund). The return for Gold in 2009 alone has already been 6%! Because of lower inflation and deflation, the input costs for gold have reduced. This in turn also provides operative cash flows. The share prices of gold mining companies are at twice the gold price.