What can we learn from the latest gold prices news? Recently, gold has been on an impressive streak of price increase. Gold futures ended at all time highs. Gold is now worth $1,317.80 per troy ounce, as of October 1, 2010. It is predicted to increase even more so, as the year comes to a close. Gold is also at an all-time intraday high of $1,322 PTO for electronic trading.

Meanwhile, the U.S. dollar continues to sink, and not so coincidentally, helps to spike up the price of gold. This makes sense. When the U.S. economy shows signs of trouble, citizens panic and convert some of their savings to gold. Gold, unlike silver and other precious metals, is mainly used as a hedge commodity. It is not widely used in a variety of industries. When you think of gold, you mainly think of investment opportunities, gold trading and maybe gold rings.

Gold is thought of as an alternative currency, and it’s one the world respects. Gold prices news travels all over the world, just as gold itself is accepted all over the world. Gold often follows the value of the dollar. What about the supply of gold? The world supply of gold is limited, and mining companies are not finding the resources we all hope. At the same time, demand for gold is increasing at an alarming rate. People want gold for their jewelry and for their extra savings account. In fact, investor demand for gold is now believed to claim a third of the total market.

What does all of this promising gold prices news mean for you, the investor? Stop buying gold for your rings and earrings. Stop buying margaritas with gold flakes inside. Instead, start investing in gold! Gold can protect you from inflation and economic downturn. This store of value commodity retains its worth, regardless of how the market turns. However, the supply is quickly running out. Now is the time to invest while the price is still affordable.

Even if you don’t have a lot of money, you can afford to start buying smaller coins (less than one troy ounce) and build up a collection slowly. Why not talk to a coin dealer today and find out the easiest way to do this? Meanwhile, keep apprised of the latest in gold prices news to see how the economy turns—and how gold always finishes first.