An insurance bet against what?
Gold is insurance against a loss of faith in official authority and the money backed up by it...
"An insurance bet against what?"
Are there any shortfalls in potential disasters? The housing bubble, bird flu, Iran, the deficit, China not to mention 50% of the country that is clueless on basic economics and the other party, the one in power, clueless about spending restraint?
Lots of potential bad stuff out there. What if the tax and spend democrats take over. If you think the republicans in congress are out of control wild spenders, imagine democrats who both spend like holywood trophy wives and disarm us in the face of terror.
You asked "Insurance bet against what?"
Answer: Wild, rampaging Weimar inflation. Collapse of credit markets. Personal disasters like bankruptcy, seizure of assets, etc.
I hope none of this ever happens to me or to you but . . .
In the meantime, my metals have appreciated about 6 or 7 X since I bought them. The numismatic value of the coins has soared in the last couple of years. And each day lately I've grinned when I checked the spot.