[21twelve]

Of course you have it on hand - much of it's value is as insurance when things really go south (transportation stops, businesses close, etc.)

Plus - I always thought that was another good reason to hold gold - it keeps it's value in inflationary times. Isn't that what the chart says?

And - I'm a bit suspicious of them using 1980 as a base, and that just so happens to be the highest value on the chart.

[greeneyes]

Well, 1980 was during the period of the great inflation. We were headed down the path toward economic crisis. A nation can not long survive rampant inflation.

The purpose of holding precious metals is to guard against loss of buying power during times of inflation, when wages are not keeping up.

That peak shows what happens when inflation is high - Gold was high too, but the paper currency was being devalued.

Speculators might do some arbitrage and make some quick profits, but if they sell their entire stock of precious metals, they have sold their insurance against economic crisis and inflation.