Gold Reaches $1,000 per Ounce - Should I Buy Gold?

On February 20 2009, gold hit a peak of $1,000 an ounce. In response, a reader asked:

Is buying gold a good idea?

Of course, no columnist can say what is the best financial course of action, because it all depends on your personal financial goals. However, most financial planners will tell you that you should have no more than 10% of your assets in gold. Furthermore, gold tends to be a good hedge against declines in both the dollar and in the stock market.

What It Means to You

Research from Trinity College showed that gold's value increases 15 days after a stock market crash. That's because panicked investors sell their stocks, and buy gold. After that, gold returns to its normal value.

• Why Invest in Gold?
• Should You Buy Gold?
• What Are Commodities?