Gold as a Currency
The utilization of gold as a currency is a practice which dates back to the early Middle Ages, though it was not until the 1700's that gold replaced silver as the precious metal of choice in Western territories. The "gold standard" was introduced, a system where the value of a currency was defined in terms of fixed amounts of gold. It was only after the huge economic turnaround inflicted by the Great Depression of the 1930's that the gold standard was abolished and was officially no longer a currency, as is now the case. However, in practical terms, owning gold is effectively equal to owning money even today, because it can easily be converted to cash all over the world. Economically speaking, gold is "liquid"; it is, for all intensive purposes, a currency in itself. Moreover, its value against other currencies undergoes slight rises and falls in the same way that the value of, for instance, the euro against the pound is ceaselessly changing.
Investing in Gold
Quite simply, we want to know whether or not gold is a profitable investment in today's economic climate. How much is it worth? What will it be worth in years to come? These questions are more difficult to answer than what one might think, because gold has no set value and its worth, although somewhat affected, is not directly related to any financial event. Due to the fact that it has no function, other than in aesthetics and decoration, investing in the yellow metal is dissimilar to investing in oil, for example, as it is not considered to be a material which one would put to use. In this aspect, owning gold is comparable to owning an expensive painting, in that its value is based not upon what it can provide as a physical object, but rather upon what someone would be willing to pay for it.
Considering the matter more specifically, now is as good a time as any to invest in gold, partly due to potential advantages for possessors of the metal coming as a result of the financial crisis in Greece. Gold suffered losses in 2013 and 2014, but this year, things have been much more positive. Most forecasters predict that the value of gold will rise significantly in the remainder of this year. It is wise to put some wealth in an asset which doesn't rely on the central banks; ownership of gold acts as an insurance to prepare for a potential major event such as war or financial collapse. Currency wars between central banks are likely to result in a reset of the current monetary system; an event which would increase the value of gold materially. Investing in gold in 2015 is on the whole a good idea. Even in the case of hyperinflation, gold would maintain its real value, and should there be a collapse of the banks, investors of gold would avoid financial turmoil.
Having said that, only a small fraction of total savings should be invested in gold. This is because despite its advantages, there are some considerable shortcomings which must be addressed. Firstly, there is no tax advantage for investments in gold, unlike in other investments. Furthermore, gold, as a precious metal, is subject to confiscation by the government, so one always bears the slight risk of the complete loss of an investment.
Overall, should you decide to make an investment in gold, now is the time to do it, but it is recommended that you invest no more than ten percent of your savings.