## Is Gold a Good Investment Now (2016)?
**Executive Summary**
The decision of whether or not to invest in gold is a complex one that depends on a variety of factors, including the investor’s risk tolerance, investment horizon, and financial goals. While gold has historically been considered a safe haven asset, its performance in recent years has been mixed. Some experts believe that gold is still a good investment, while others believe that it is overvalued and due for a correction.
**Factors to Consider**
The following are some of the key factors to consider when making a decision about whether or not to invest in gold:
* **Risk tolerance:** Gold is a relatively safe investment, but it is not without risk. The price of gold can fluctuate significantly, and there is always the potential for loss. Investors who are not comfortable with risk should consider other investment options.
* **Investment horizon:** Gold is a long-term investment. It is not a good option for investors who need to access their money in the short term.
* **Financial goals:** Investors should consider their financial goals when making a decision about whether or not to invest in gold. Gold can be a good investment for those who are looking to preserve their wealth or hedge against inflation. However, it is not a good investment for those who are looking to generate high returns.
**Performance in Recent Years**
The price of gold has been on a roller coaster ride in recent years. In 2011, the price of gold reached a record high of over $1,900 per ounce. However, the price of gold has since fallen by over 30%. In 2015, the price of gold averaged around $1,150 per ounce.
The decline in the price of gold has been attributed to a number of factors, including the strengthening of the US dollar, rising interest rates, and increased supply.
**Outlook for Gold**
The outlook for gold is uncertain. Some experts believe that the price of gold will continue to decline in the short term. Others believe that the price of gold will eventually rebound.
The following are some of the factors that will likely affect the price of gold in the future:
* **The strength of the US dollar:** The US dollar has been strengthening in recent months. This has made gold more expensive for investors who hold other currencies. If the US dollar continues to strengthen, it could put downward pressure on the price of gold.
* **Interest rates:** Interest rates have been rising in recent months. This has made gold less attractive to investors who can now earn a higher return on other investments. If interest rates continue to rise, it could put downward pressure on the price of gold.
* **Supply and demand:** The supply of gold is increasing, while the demand for gold is decreasing. This could put downward pressure on the price of gold.
**Conclusion**
The decision of whether or not to invest in gold is a personal one. Investors should carefully consider their risk tolerance, investment horizon, and financial goals before making a decision. Gold can be a good investment for those who are looking to preserve their wealth or hedge against inflation. However, it is not a good investment for those who are looking to generate high returns.
**Additional Resources**
* [Goldman Sachs: Gold Outlook 2016](https://www.goldmansachs.com/our-thinking/archive/gold-outlook-2016.html)
* [World Gold Council: Gold Outlook 2016](https://www.gold.org/goldhub/research/gold-outlook-2016)
* [Kitco: Gold Price Forecast](https://www.kitco.com/gold-price-forecast-2016/)