Gold prices have climbed through the roof during the last few years. It has been a great time for people who have invested in gold as a commodity or hold on to a lot of gold ornaments. One of the big question everyone has in their mind if should I buy gold or gold ornaments as investment? Our thoughts and recommendation is that gold has peaked and will continue to decline. Many investors look to gold as a inflation hedge, however, or belief is that inflation is not a major concern in many of the dominant economies such as U.S, Europe etc. In other countries like China and India which may be at the verge of heating up, the central banks will start tightening monteray policy and make sure that inflation is under control. Hence with the mature countries under the pressure of weak economoy and the emerging markets under the pressure of tightening monteray policy, there is not much cncern for inflation, hence the recent increase in gold price may be more of a speculative play, just like stock markets or oil price increase of 2007, 2008.

