Most governments stock bullion to back up their currency. The more they stock, the less you get to buy. In fact, in 1980, gold prices rocketed upwards from an otherwise sedate, steady climb to prices that haven’t been reached even now. This happened because your government bought up tons of gold and left none in the market. But they realized the error of their ways and released some gold.

The US dollar has an inverse relationship with gold. If the dollar strengthens, gold prices slip. If the dollar weakens, gold rises. Gold is rising still and this time it’s because of an extra-weak dollar. A 25 basis point rate cut by the Fed has accentuated the downward movement of the dollar. Gold has crashed the psychological barrier of US$ 800/ounce. High oil prices may cause inflation and prompt more investment in gold, creating more demand and higher prices.

Should you be buying gold? Yes. Short of a catastrophic mutation of your DNA, nothing will change the value of gold in your life. There may be short-lived swings either way, but invest in gold and you will always be worth your weight in the yellow stuff.

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