Modest projections for the gold price by the end of 2011 have already been exceeded. Many financial analysts were predicting that the current gold price would be working its way towards $1,500 at this time of year. Instead, the gold price has already surpassed this mark and is set to reach the bullish predictions of more optimistic analysts. Many believe that it will reach $2,000 or beyond by the end of the year.

After reaching a high of $1,576.50 on May 1^st, the gold price took a tumble. Many investors believed that this was just a natural correction and that the value of the yellow metal would be boosted once again by strong investor interest. Gold did indeed bounce back and is now making steady progress towards the $2,000 mark. The current gold price was above $1,540 on June 3^rd and poised to surpass its May 1^st high.

Gold has been customarily used as a hedge investment. The ongoing state of the economy in recent years has led to massive exposure of gold as a “safe haven” investment. Television and Internet news stories are filled with bullish perspectives on this precious metal. As a result, gold has become a mainstream investment vehicle among long-time investors and those just entering the investment world. Even central banks of nations such as China, India, and Mexico are purchasing this yellow metal in large quantities in order to preserve their stores of wealth.

Contemporary geopolitical factors have caused gold to move from strength to strength in the last several years. It has been continually and quickly rebounding from minor setbacks and corrections. The falling dollar value, political strife in Northern Africa and the Middle East, and fiscal policies in European countries such as Greece, Ireland, Spain, and Portugal indirectly support the current gold price.

Monetary policies in the United States are also under question. As CEO of Newmont Mining said, “You have to wonder about the long-term decline of the U.S. as the central bank of the world.” Dollar-based investments are seen as highly instable by scores of investors these days forcing investors to diversify their financial portfolios with alternative investment opportunities such as precious metals.

Another benefit of gold investing these days is that it is easier than ever to add precious metals to an investment portfolio. Whether through indirect gold certificates or derivates, or through the direct purchase of gold via certified coins or ingots, gold has become an accessible commodity purchased around the world.