Get in on the gold action now! Every investor should know that gold is a hedge against inflation. There has been a huge movement in the gold price, and there are several reasons for that.

To protect yourself from out of control government spending and sky high inflation your money needs to be in gold bullion, gold ingots, and gold bullion coins

The gold demand is rising steadily with no end in sight. Investors looking to put their money into hard assets increased the demand for gold in 2008 by 64 percent. Countries who have added to their gold piles include Russia, India, China, and others. The IMF recently made a sale of 200 tons of gold to India.

The amount of gold available for each person is miniscule at 23 grams. That is only about $840 worth per person. The value of all above ground gold inventories is about $3.7 trillion, and is going up rapidly.

The amount of gold above ground is–0,000 tons and that number goes up by 2,600 tons every year. With this 2% increase each year, it doesnt scratch the surface of demand placed on the yellow metal.

The demand for gold each year is about 4,000 tons, so the mines are coming up short by about 1,400 tons. Until the recent gold price highs, gold has been selling for around the cost of production.

The gold and silver mine supplies have plummeted by 10% due to the low prices. If you add up all of the fundamentals, gold should be much, much higher.

Supply and demand have not played a part in these markets since price manipulation has been occurring. Even though the price of gold has risen to current levels of $1,140/oz, the inflation adjusted price puts gold at around $7,000/oz.

This price manipulation by our government has occurred to keep the dollar falsely propped up. Central banks have played a part by selling gold bars onto the market and sending the price of gold lower. These tactics are coming to an end because central banks are running out of gold.

Another factor that has suppressed the gold price is the advent of paper gold (i.e. exchange traded funds, futures contracts). These investment vehicles simply give you the price exposure to gold. The futures contracts on the COMEX will allow you to take physical delivery of your gold, but many investors are finding that the COMEX is defaulting on the delivery. The default is occurring because the COMEX does not have the gold that they claim they have.

ETF shares or COMEX contracts will only leave you wondering if the gold is really there. These investment vehicles are the governments way of keeping investors in dollars therefore strengthening dollars.

These fraudulent investment vehicles will blow up, and they are just another bubble waiting to burst. Unless you know for certain that a paper investment has the gold that they claim, stay away from these investments. You should invest in American Gold Eagles, American Gold Coins, and gold bars.

With a crashing dollar, you will be sorry if you choose not to invest in hard assets. With the current price of gold at $1,140/oz, there is suddenly a reason to get out of dollars. $1,058 was the price of gold per ounce one month ago. You can see how far it has come. Gold will protect you and your wealth in this economy. Buy gold now to hedge against inflation!

To learn more about whygold is a hedge against inflation then check out my site.