The current economy and rising inflation have investors looking for ways of diversifying their portfolios and they are flocking to gold in drones.

Gold as an investment has stood the test of time and will continue to do so far into the future.  The precious metal acts as a hedge against inflation, which it explains its rise in value when the dollar goes down.

The supply of gold has always been constrained.  This helps the metal hold its value over the long haul.  The supply of gold increases at a very slow pace.

Investing in gold is not difficult.  Many folks think that to invest in gold you need a super safe installed in your home to store all of your loot.  That is not the case at all.  In fact, most people that invest in gold never actually see or touch it, although that option is available.  Most gold investors buy and sell their gold through an exchange-traded fund (ETF).  An ETF is similar to a mutual and you can trade it just as you would a stock.  An example of a well know EFT is iShares Comex Gold Trust (GLD), which trades on the American Stock Exchange.

Trading through an ETF is safer than actually acquiring and storing the actual gold yourself.  Physically owning gold can be very risky, as it can be easily lost or stolen.

Another option for investing in the gold market is to buy into mutual funds that own precious metal related companies, like gold mines.  An example of a fund that invests in gold related companies is Market Vectors Gold Miners (GDX).  GDX trades its shares on the American Stock Exchange also.

If you must physically get your hands on gold, then gold coins are the way to go, however, you should really do your homework before investing in gold coins.  Many coins have inflated value because of their historical significance and collectability.

An ounce of gold is currently trading at around $1,102.  Just over five years ago the price of gold was $409.