Recently there has been much speculation about whether or not stocks have seen their run and will be falling back to early 2009 levels once more.  The approach of the holiday season has Americans bracing for potentially even more layoffs and poor earnings reports.  The real estate market is beginning to show signs of another bubble bursting, this time in the commercial real estate sector.  With all this bad news, it’s no wonder so many people are turning to gold as a safe haven.  Even American investors, many of which were ignorant to the great potential in gold’s upward climb to $1000 plus, have begun to really take financial shelter in the yellow metal.

The rush to gold, both as a hedge against possible inflation and economic uncertainty has kept prices hovering around the $1000 for quite some time.  This price has kept many out of the market who would otherwise be looking for a piece of the action, and has forced the vast majority of small time gold investors into buying fractional gold, or bullion that is less than one troy ounce in weight.  Fractionals are attractive to the average investor because of their size and lower prices, but the premiums can be quite high, making them a very expensive way to build total ounces.

In many foreign countries gold has always been something that consumers sought after to help insulate their wealth.  In Europe and Asia, most average citizens have some sort of position in gold or other precious metals.  I often wonder if the US will follow suit and learn from its much older, and often much wiser piers.  The storage of wealth in gold has been a relevant investment principle for thousands of years, but only now is gold coming into the limelight and being rediscovered, this time by the American investor.

Not only do investors want to hold gold as a store of wealth, but they are now, more than ever realizing the importance and influence of gold.  Gold’s impact on the global economy is quote compelling to say the least, and many people in the US are just being turned onto it.  China has long been buying up gold and many countries are stockpiling it as a way to maintain their overall financial prowess.  Some countries, like India and Pakistan, see gold not only as an investment but also as a religious or celebratory substance.  Much of the world’s gold supplies that are mined each year end up in the hands of these people as certain festivals and celebrations take place throughout the year.

It’s easy to see the influence that gold has had in the global economy over the past few millennia, but it’s interesting to see US investor’s reaction to the metal, especially now since the economic recession is still in full bloom and people are looking for ways to really bulletproof their wealth.  My prediction is that gold will hit new highs in 2010 as US investors and consumers come to the same realization that so many others around the world have come to over the years- that gold is the ultimate insurance policy and store of wealth.