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Gold spot prices have continued to increase through the first decade of the 21st century, showing the resiliency and strength of investment in this precious metal. For the decade, gold spot prices are up an average of 14% per year, including a hefty 25% increase for 2009. This success has made gold one of the decade’s best investments, and a potential heavyweight moving forward into the next decade as well.

Gold has continued to receive praise from many in the investment community with one publication referring to it as an “indispensible” asset and another viewing it as one of the “best hedges against inflation.” Many analysts agree that the rise in gold spot price suggests that financial calamities such as the global credit crunch are largely responsible its continued success.

The economic signs seem to indicate that the strength of gold spot prices may continue its success into the upcoming decade as well. The United States has flooded its monetary system with billions of additional funds while attempting to stimulate the economy. This flooding of the market weakens the dollar and strengthens gold investments. In addition, gold spot prices can also benefit from the potential inflation that low dollar value can create.

Gold spot prices have ended the year hovering around $1,100 per ounce. All eyes will be on the precious metals market moving into the new year as investors hope for continued success with gold, silver and other metals. The economy, inflation and other factors are likely to determine how profitable metals could be in 2010

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info