For the past 5,000 years, gold has exercised a mystique virtually unrivalled by any other physical substance. The people of antiquity used gold to craft the things they valued highest, both secular and religious. When it the time arrived for money to replace barter, gold's beauty, solidity and scarcity lead societies to settle on gold as the medium of exchange.

The idea of investing in gold is nothing new; people have been doing it for centuries. The gold market is not immune to ups-and-downs, but it always seems to wear well despite economic and social uncertainty, which has lead many to regard it as a top notch investment tool.

And it is a good time to know about this, as you should be especially concerned about the value of the dollar at the moment. The fight in Congress over the budget last year resulted in a historic defaulting on the national debt, resulting in Standard and Poor's downgrading of US credit. And we are sure that you agree that, wherever your stand on the issue of government spending, it can lead to a boost in inflation.

You should also be aware that the value of paper currency is essentially a myth. Whenever you pay for anything, you take for granted that the dollars you are using are backed up by the US Treasury - an act of faith, if there ever was one. This state of affairs can be traced back to 1973 - the year the US officially departed from the Gold Standard, which meant that a dollar could no longer be exchanged for its value in gold. The purpose of abandoning the gold standard was to generate increased economic growth and opportunity, but it did this at the risk of increased inflation.

In a nutshell: gold is a tangible commodity with a demonstrated ability to withstand erosion of value over time. We all know that the price of almost everything has gone through the roof in recent decades. In contrast, the quantity of gold required to purchase a barrel of crude oil hasn't changed that much during the same period. Over the last 10 years, gold prices have consistently risen against the US dollar and foreign currencies; 2010 alone saw gold rise 29.8% against the U.S dollar. And this trend is expected to continue, both in this country and the world over.

And investors around the world believe that the demand for gold will rise for at least the next few years and advise that at least 10% of your portfolio consist of gold. A few of the reasons for their optimism: the emerging nations are showing an obvious appetite for gold and international central banks have been buying it for their reserves in lieu of cash.

Clearly, the time has arrived for you diversify your portfolio. Please note: silver is beginning to look increasingly attractive and should also be added to your portfolio.