Having piles of gold has long been the dream of many. Since you are not likely to stumble on a gold mine, the best way for you to get gold is to purchase it. If you are like many people, you need help knowing when and why to buy gold. You need to take several things into account before you enter the market. 

Unstable World

Experts recommend that investors own at least a little bit of gold at all times. However, that amount should go up in times of uncertainty. Sadly, periods of world conflict can adversely affect currency, devaluing it and making precious metals more desirable. If you feel the need to keep your finances more secure during times of conflict and deteriorating social conditions, gold is the way to go. 

Stock Market Decline

There is often a long term "inverse correlation" between falling stock prices and the price of gold. Even though the recent steep drop in the stock market doesn't mean that gold will go up immediately, it may indicate that 2016 will be a good year to buy. The volatility in oil prices does not currently bode well for the health of stocks in the coming months. Some stock market analysts are predicting the market may drop significantly lower because stocks are still greatly overvalued. As a result, the correction period may be long and painful. 

Tangible Currency

Gold prices rise and fall, but many investors feel more secure by owning a tangible asset that will always be worth something. Since the amount of gold available is finite, it cannot be replaced with something else. Unlike paper currency, it cannot become worthless. If you want something that you can physically store and control, then gold and other precious metals are a good investment for you. You can get peace of mind from gold that you can't from stacks of paper money. 

Gold is not the answer to every financial situation, but it is a sound part of a diversified portfolio. Although, experts advise you own at least a small amount of gold at all times. However, 2016 is shaping up for a particularly good year for investing in this metal. If the stock market continues its correction downward, gold prices will likely go up. Just having gold safely stored away can not only bring you profits but will also give you a sense of security in an uncertain time.