When the Dollar Declines, Should You Buy Gold?

As the dollar declines, readers wonder now is a good time to buy gold. Many investors think of gold as a good hedge against a declining dollar. Since many investors believe this, it has become a self-fulfilling prophecy. Gold prices can rise when the dollar declines. However, most financial planners will tell you that you should have no more than 10% of your assets in gold.

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?