Gold, of all the precious metal, is the most popular as an investment. Gold throughout history has been used as money, and therefore, instead of gold having a fixed price, other goods and services had been priced in relation to a proportional & compatible quantity of gold per economic region.
Today, like all investments and commodities, the price of gold is ultimately driven by supply and demand. The price of gold is mostly affected by these factors:
Bank failures, Low or negative real interest rates, and War, invasion, looting, crisis.
Investing Gold can be done traditionally through gold bars and gold coins, or nowadays through Exchange-Traded funds and Derivatives. In most Swiss Bank, gold can be instantly bought or sold in accounts just like any foreign currency. BullionVault is operating under the same principle.
As of November 16th, 2009, Gold has reached an all time high of US $1,133 an ounce.
Source:
http://en.wikipedia.org/wiki/Gold_as_an_investment
http://en.wikipedia.org/wiki/Methods_of_investing_in_gold
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