By Alexander E. M. Hess
24/7 Wall Street
Throughout history, investors have often regarded gold as a safe haven — an asset that can, at the very least, keep its value over time. In the past, a number of currencies, including the U.S. dollar, were backed by the gold standard, under which money was freely convertible into gold. The precious metal also has various uses, in jewelry, technology and medicine.
However, gold is also a controversial investment. While some may see the precious metal as a safe asset and protection against inflation, others may view it as a highly volatile bet. The price of gold in recent years may prove both points of view right. Gold prices surged during the Great Recession. But as the world economy began to stabilize and more recently recover, gold prices reflected the changes, dropping 24% in the past 12 months.