Back to Gold? Ask the Flav

Gold is all over the place, up, down, and almost as risky as calling 911 and getting help.  Hold up, who knows more about gold teeth and fashion and 911 being a joke in your town?  There's not a minute to spare.

Yamana Gold Inc. (USA)  (Public, NYSE:AUY), Kinross Gold Corporation (USA)  (Public, NYSE:KGC), Coeur d'Alene Mines Corporation (Public, NYSE:CDE)., Royal Gold, Inc. (NASDAQ:RGLD), and even the Godfather of mining, Rio Tinto (NYSE:RTP) have all been beat down lately thanks to the sinking price of gold.

Gold prices have declined over the past few months, but some believe that recent turmoil in the financial markets may increase demand for the commodity.

Let's review what the talking heads are saying:

Many experts attribute the fall in gold prices to the decline in the U.S. dollar since it is a dollar-priced asset. Many investors have also begun to move out of commodities and into stocks as they see value in today’s stock markets. However, the decline in gold has been far less than that of commodities in general while many experts even call it a healthy retracement. In fact, increases in the U.S. dollar and a continued decline in stocks may end up boosting prices for the commodity.

StockMasters Sponor

Gold has also historically been used as an inflation hedge, and there is clearly an inflation problem. The Consumer Price Index in July has increased 5.6 percent year-over-year thanks to higher food and energy costs. Meanwhile, many other economic threats in emerging markets and conflicts could help boost the price of gold. Finally, the increased threat of a worldwide recession could help spur demand for gold even further, which may have led to recent speculation.

SPDR Gold Trust, formerly StreetTRACKS Gold Trust, is an investment trust that holds gold, and from time to time, issues the SPDR Gold Shares in blocks of 100,000 shares (baskets) in exchange for deposits of gold and distributes gold in connection with redemptions of baskets. The shares represent units of fractional undivided beneficial interest in and ownership of the trust. The investment objective of the trust is for the shares to reflect the performance of gold bullion prices.

Fellow Masters, keep an eye on gold, yes its risky, but so is being in the market right now period.

To ease your mind, review this video.  In the first 10 seconds check out Samuel L. Jackson, before he got big, and enjoy this classic song by Public Enemy as you ponder investing in gold: