Signal of market correction as gold passes $1,000?


Gold is a hedge, or at least that is what economists say. It is an investment that protects against inflation because it is in limited supply and is a hard asset that holds its value, even if rising prices erode consumer and business spending power.

It is also a hedge against a falling stock market. Stocks may fall 30 percent in value, but the long-term value of gold should be much more steady.

Originally published