Earlier in the year we pondered whether gold could really rise to as much as $1,000 an ounce this year. It appears that many industry experts were correct with gold managing to hit this magic number earlier this week.

The US dollar slumping and inflation fears have sent investors looking towards safe places to invest their money, with gold being one of the popular investments. This popularity is the major reason why gold has hit such high levels. The US dollar fell below the key 100 yen mark for the first time in over a decade as well as falling against the Euro. This has prompted further worries over the state of the US economy with many predicting it is entering a recession.

The figures show that gold prices have already jumped around 20% this year, compared to a rise of 32% during 2007. Many believe that gold prices will rise even further – some have claimed that there are supply constraints, and coupling this on the back of the weak dollar and inflation pressures will only see more people flocking to buy alternative investments such as gold.

Other metals also look set to have a good year with platinum and silver also recently rising in prices, making them a good alternative option to buying gold.

Popularity: 31% [?]