Current price volatility in the gold market has investors wondering if now is a good time to buy. Gold is a historically stable precious metal that can be used as a hedge against inflation, provide a safe haven for investment and also act as a reliable store of value in unstable financial and political times. At the moment, gold is trading at US$2000 per ounce. That’s the highest price we’ve seen since 2012. This is a difficult price to reconcile with the current economic environment, with many countries in recession and recession concerns looming globally. However, there are several factors to consider when deciding if now is the right time to buy gold. Firstly, gold prices are driven by three main forces: supply, demand and expectations. With key central banks around the world buying up large amounts of gold, buying more gold at this time could increase the demand even more, in turn, driving up the price of gold. Furthermore, central banks around the world are printing staggering amounts of money, making this a great time to buy gold. This increases money supply, and floods the markets of traditional assets, putting pressure on gold prices. The second factor to consider is the current state of the economy. Countries around the world, as well as the United States, are facing the prospect of recession and financial uncertainty. This can be a great time to buy gold, as it can be used as a hedge against inflation and a safe haven for investment. In addition, central banks are currently lowering interest rates across the globe, which provides a further boost to gold prices. Finally, geopolitical tensions are increasing around the world, with many countries increasing military spending and nuclear tests. Gold provides a safe haven in these trying times, providing investors with a secure store of value that is not reliant on any other currency. Therefore, for those investors who are considering adding gold to their portfolios, US$2000 an ounce seems reasonable as a price to pay. Gold provides a secure store of value, a hedge against inflation and a safe haven in uncerain times. While it is still too early to predict the long term performance of gold, now does seem to be a good time to buy.