Turn on the television, listen to the radio; all the financial analysts are talking about the gold prices. Some say that they are going to continue going up and might reach five thousand dollars an ounce. With US gold prices and even world gold prices so high, it is plainly evident that there are a lot of people investing in gold. There are a few reasons for this.
The first reason is that gold has intrinsic value. Gold carries a very impressive track record when you consider that it was created as far back as 550 B.C. It was used directly as currency for centuries before paper money became legal tender. Even then, paper money in the United Sates was backed by gold. People had faith in the dollar because they knew that there was gold supporting its value. It will always be worth something, in fact, neither US gold prices nor world gold prices have ever been worth zero.
People also invest in gold because it offers protection from political unrest and social upheaval. In most countries today, the dollar is no longer backed by gold; instead, it is backed by the government’s promise. 
The United States is one of these countries. This means that when there is political turmoil in a country or increasing national debt, the value of the dollar goes down. Gold prices, however, do not.
Another reason gold is such an attractive investment is that in addition to its intrinsic value, it also has a use value. Gold is not only purchased to hoard away. Its mechanical characteristics lend it to a variety of uses. It can be stretched so thin that it is used as a film on the lenses of some welding masks. It can also be formed into a thread and used to embroider clothing or upholstery. It is increasingly being used in the science and technology industries. This “use factor” only adds to the value of gold and, in turn, its price.
There are many ways gold can be invested in. You can invest directly by purchasing gold bullion, commonly known as ingots, you can also purchase gold coins. You purchase these by the ounce and pay whatever current gold prices are per troy ounce. Another way gold can be invested in is by purchasing gold-baked securities on the stock market. With such properties and characteristics, it is obvious why gold prices continue to skyrocket.