There are two main reasons people buy physical gold: as insurance and as an investment. Those concerned about the recent economic crisis tend to view their ownership of precious metals as an insurance policy: As long as you have physical gold or silver to sell or trade, you’ll never be broke, even if the economy collapses. It’s relatively easy to buy a gold bar, and once you do, all you have to do is store it. As with all investments, the general rule of “buy low, sell high” applies to gold, whether in coin, bullion or stock form. To know the right time to buy, research the type of gold you want and keep your eye on the market. Since gold tends to perform well when the economy is in a recession, most people buy gold as a type of financial insurance policy to hedge their bets against the value of the dollar in the market. As a hard asset, gold holds its value even during times of inflation. For instance, the early 1970s would have been a great year to buy gold — its value increased from $35 per ounce in 1971 to $180 per ounce in 1974.