Scrap Gold is near $1000 What does this Mean for Us?

Back since 2007 there have been economist encouraging to invest in scrap gold. Today gold is rising close to $1000 an ounce. Is there something gold investors are sensing that most people are not?

The price of gold is nearing $1,000 an ounce. It closed at $997.70 Thursday, up $19.20 from Wednesday. This rise might be a cause for concern.

I was at a "Rich Dad Poor Dad" seminar and even Kiyosaki himself had invested huge into gold. Why? He said we are in the midst of inflation, the recession is not over yet. It's just that America has printed out a surplus of dollars and that's what we needed, more money, however, in the next year the American dollar will just get weaker and weaker. A HUGE inflation is still yet to come up, it's just that 80% of Americans are still asleep and don't realize it.

Gold hit a record high of about $1,014 in March 2008, just when Bear Stearns was on the verge of collapse before being "rescued" by the Federal Reserve and JPMorgan Chase (JPM, Fortune 500).

A couple of months later, gold got close to $1000 again due to worries about inflation and a weak dollar. Gold's rise matched oil's march to a record high.

Finally, scrap gold got close to $1000 again in late February of this year, a time when investors were fretting that big banks such as Citigroup (C, Fortune 500) and Bank of America (BAC, Fortune 500) might need to be nationalized.

So what's driving the gold rush this time around?

The soar of the scrap gold market starts to make some investors worry whether the stock market rallied in March a bit too fast.

"There hasn't been too much big news driving up gold prices. There is no major catalyst," said Kathy Lien, director of currency research at GFT, a foreign exchange and futures brokerage firm in New York. "I don't think it's a fear of instability in the financial sector. It does reflect skepticism about the strength of the global recovery."

Billions of dollars has been pumped into the financial system by the Federal Reserve in the past year, some investors may also be worrying about the dollar weakening again, and you should be. Because this time it will, while other countries like China are soaring, America's debt is accumulating and it will just get worst from here. A wise indicator is Europe, London used to be the financial capital till it was passed to D.C. Look at economy at Europe, there are far less baby boomers to help support the retired community. This is what will happen to America as well, the debt will be passed on to our children, and our grandchildren. They will have huge tax burdens they cannot afford.

It's highly advisable for investors to invest in scrap gold in this flaky economy and for your children's futures. Why can gold buy the same goods it could 50 years ago? Because the value is always there. If you want to know how the dollar is doing today versus 50 years ago, a dollar today is worth a nickle back then. The dollar weakening? I think so too. You can educated yourself more about your gold with related resources. See Gold Learning Resources and educate yourself the best options for you to protect you and your family's financial future.