Gold seems to be the hot commodity for these perilous times.

Investors who are looking for a place to stash money have pushed the price of gold to an all time high of $1,000.00 per oz. What a difference a few years can make. In December of 1999 the price of gold was at 326.00 per ounce. In less than 10 years the price has tripled.

So what's behind the demand for gold?You can blame the falling dollar and fear of inflation on investor's current love affair with the precious metal. Rising prices and lower purchasing power are two of the main reasons why investors' hedge their portfolio's as gold prices have historically increased with inflation. .

You don't have to be a hedge fund manager to invest in gold. Here are a few ways you or your financial advisor can position some of your greenbacks into the precious metal:

Mutual Funds - Portfolio managers invest in mining companies which benefit from the rise in precious metals.

Exchange Trade Funds - Goldshares (GLD), which is an ETF which share price is based on the underlying price of gold bullion.

Gold Coins - Collectors buy coins for their antiquity and investors can purchase as a way of profiting from the price of gold.

Gold carries risk just like any other investment and the price can fall as precipitously as its' recent rise.

In other words, proceed with caution.

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