Rising Gold Prices

My parents are gold wholesalers, who basically buy and then sell gold. Since of that, knowing what is happening with gold prices is important to the family. As the economy of the country gets worse, and the worth of the dollar decreases due to inflation, gold prices increase. The price of gold increases because as the dollar loses its value, people turn to gold for safety since gold is a valuable metal. People want a safe type of money that will work when they no longer trust the dollar, which is then seen as weaker.

However, as more people turn to using gold, the demand for it goes up. When the demand for something rises, the price rises with it. Thus, problems of inflation occur. The gold prices start to rise, and become troubling for people who use it. The problems that rising gold prices cause become very problematic for many.