[mugs99]

Gold has no more inherent value than anything else -- the laws of supply and demand apply to it as much as they do to currency
Fiat currency has become worthless many times in history. Gold never has.

If you'd kept that ounce of gold since 1900, you'd have lost a lot of money.
My ounce of gold from 1900 has retained its value. Fiat currency has lost its value.

(1) You'd have had zero positive return on your investment.
Gold is not an investment. It is protection of wealth.

You'd have lost money in storage
The gold in the coffe can under my bed has cost me nothing to store.

transaction and authenticating fees,
I pay no fees. I save free gold, not coin.
I actually make more than spot when I sell.

you'd have had capital tied down in gold that you could have spent on better investments (securities, real estate, etc.).
I'd also have lost money on fees paid on those securities etc.
I'll repeat. Gold is not for investors. Its for those who want to insure that they will have purchasing power in emergencies.
.

[Toddsterpatriot]

Gold is not an investment. It is protection of wealth.

Does it alway protect your wealth?

The gold in the coffe can under my bed has cost me nothing to store.

Carrying cost. Opportunity cost. What did you lose in interest or dividends on the money you spent on gold?

[Alter Kaker]

Fiat currency has become worthless many times in history. Gold never has.

So buy Euros, Yuan and Yen and keep your bases covered. Anyway, why can't gold become worthless? Why is it anymore immune to the laws of supply and demand than anything else?

The gold in the coffe can under my bed has cost me nothing to store.

But it will if you ever decide to sell it, because you'll have to pay someone to authenticate it.

I'd also have lost money on fees paid on those securities etc.

Yes but you would have been able to afford it, given that the return are much higher. If you had invested $20 in the stock market in 1900 and reinvested the dividends, you'd have tens, if not hundreds of thousands of dollars now.

Gold is not for investors. Its for those who want to insure that they will have purchasing power in emergencies.

That's legitimate. However treasury bills, real estate, and even pork bellies are probably more secure and more likely to be convertible.