The price hike in gold as well as some other precious metals were dramatic during the past decade, over the past 30 years, with gold more than quadrupling in value (from less than $300 per ounce).

While gold and other precious metals seem to have increased in value – but the value has not kept up with the cost of living.

Gold is a precious metal and will always have great value, just like diamonds. Their value cannot be attenuate in the way that paper currencies can be.

It has been seen that people drifting into gold and silver investments during times of economic crisis. There is a hike by more than 500 percent in Gold and silver prices and stocks faced severe losses during the mid seventies. Gold has appeared to hit a bubble during this latest economic downturn.

Long term investment in gold and silver, has not produced any significant benefit. Investors don’t get dividends on these metals and the average prices do not even match the cost of living. But, it is wise to invest in precious metals rather keeping the cash idle. But if you want real profit one should invest on bonds, stocks, and real estate. Buying mutual fund of Gold and silver would be a wise and intelligent investment.