And then add the effect of peaking energy supplies and how that curbs growth — not to mention the wave of revolutions in the Middle East — and I think gold’s best days are still ahead.

Also, I think precious metals have been artificially suppressed in order to prop up the US dollar. That’s changing as we speak. I’m not saying I understand this completely but I do feel good about owning metals right now.

The truth is it does not matter how much Gold or Silver you have when and if society breaks down. Do you really want to be walking around with Gold and Silver with angry mobs walking around looking for food?

If your worried about hedging against currency inflation, then Gold and SIlver will be key, but don’t put all your money into it. If your worried about a total economic collapse and breakdown of society, then you should consider storable foods, shelter and stocking up on items which can be used in barter and of course personal safety protection like a firearm.

While selling an existing position in gold might not be a prudent immediate move, I’d hesitate to open a new position at this time. There is an obvious bubble forming here and it will pop eventually like any other.

First off, yes, the people who chase returns — of anything, be it stocks, real estate, or gold — will pretty much always get burned. They come to the party too late and most likely have no idea WHAT they are buying or WHY they are buying it (beyond just wanting a piece of the now-historical double-digit gains).

The reason I buy (buy being a misnomer) gold and silver is for wealth preservation. I don’t “buy” these precious metals, per se; what I am doing is trading my inflation-riddled government fiat currency for a close-to-currency (and once was currency) replacement.
“Over the long term gold has typically just barely edged out the rate of inflation.” which is exactly why you trade a portion of your cash holding for gold. For the past one hundred years, over any 20-year period, the per annum gain of gold is 5.25% (any 5-year gain is 6.2% per annum). What is your 5-year GIC or “high yield” savings account paying you?

Remember, you also pay bank fees (every YEAR) and tax on any interest (plus any brokerage fees incurred buying and selling stocks — there are no premiums selling gold). Cash still sounding like a good idea?

$1000 in gold today will most likely purchase $1000 worth of good in 25 years. $1000 in cash today will most definitely NOT purchase $1000 worth of goods in even ONE year let alone 25 years!

If people are looking for a quick buck, gold is not the way to go.
If they are looking for a cash substitute which will not loose value compared to their cash, gold is excellent. Buy gold when “official” inflation rates are low (historically, rates are incredibly low right now), sell when rates are high.

The author states “Gold can only sit there and wait for the global market to dictate its value.” The same applies, 100%, to any and all stock markets (and economies). Recall 2008 if you will. Although that crash was proliferated by fraud and manipulation, the “global market” swiftly and deftly priced in value corrections. The gold market suffers none of the same fraud or manipulation. With gold, what you see is what you get.

Another stated myth in the article is “Lack of liquidity”. Dear author, are you kidding? Cash has ultimate liquidity; next is gold. Somewhere down the line is paper equities. Equities are far, far, less liquid than you think, and exceptionally less than gold. Remember, it’s not the equity itself which dictates liquidity, it’s the market. The market for gold has been around for millenia.

You can very definitely sell your gold with the click of a mouse — ever hear of ebay?

Think of a trip to the local coin store as a trip to the bank — a different type of bank.

“A bag of gold coins worth $5000″ is about FOUR coins. A heavy burden indeed.

Safety deposit box yearly cost is tax deductible.
Mutual fund management fees (which erodes any profit) are not.

“…ETFs that track gold so you can eliminate the burdens of owning physical gold and maintain liquidity.” — then you do NOT own gold, you own yet another paper equity, subject to everything all your other paper equities are subject to. PHYSICAL gold removes your slice of wealth from that market. As mentioned before, there is NO “burden” to owning physical gold.

If you are still wondering if you should buy SOME gold (do NOT sink everything you have into just one asset class!), take a look at all the countries around the world whose governments hold gold reserves. Take the advice of one blogger, or heed the actions of reality.

Thanks for the time and space.

Heck, even if you don’t store the gold at home and at the bank or something it could still somehow get around town as a rumor and end up having someone break in just assuming the gold is in the home.

Of course, this goes for any valuable asset. If you’re bragging about the new car stereo system or high-end home entertainment theater and the wrong person catches wind of it it’s the same sort of problem.