Hello and welcome to Moneygirls quick and dirty tips for a richer life.

Today's topic, how to invest in gold.

Two episodes ago I explained how gold acts as the anti-dollar,

meaning that its price tends to go up

as the US dollar goes down.

Since 2001, the US dollar has been losing value

and the price of gold has been going up.

It was $270 per Troy ounce in early 2001 and is now in late October 2007 over

$780 per Troy ounce.

If you want to learn more about how gold acts as the

anti-dollar, check out the episode from two weeks ago on this topic. The supply of

gold is constrained which helps gold hold its value.

The gold supply increases very, very slowly, as more gold is mined.

Gold acts as a hedge against inflation and a store of value over time.

In ancient Rome, for example, a single one ounce gold coin could buy a quality toga,

a pair of sandals, and a belt.

Today, the same is true.

A single one ounce gold coin is about $780,

enough to buy a good quality suit, shoes, and a belt. If you think that we'll experience more inflation ahead and that the dollar is

likely to continue to lose value, you might be contemplating how to put a portion of your

portfolio into hard assets such as gold.

But how does an ordinary person invest in gold?

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