"If the monetary system ever collapses, which is pretty extreme, I'd be worried about a lot more things thing than just the gold in my portfolio."
Over the decades I have found it more than slightly amusing how the ones infected with the gold bug really want a total collapse of our monetary system and the world's.
That only applies to those extremely infected. Lots of investors have a 10% - 20% position in Gold, Silver, etc. to hedge inflation, and as a counter to stock prices (usually inverse relationship) - to diversify. Sometimes it is profitable, sometimes it isn't. Just like stocks, or bonds.
I have bear funds, stock funds, gold funds, silver funds, US stocks, foreign stocks - etc. I ease out of them when they seem to have matured, and buy into them when they are neglected. It is a discipline that works fine over a cycle.
Gold and Silver have worked extraordinarily well over the past few years. So have Apple (AAPL), Diamond Offshore (DO), and Titanium Metals (TIE), and most of the energy complex. I've been lightening up on my Gold holdings - clearly as have other investors - hence the recent decline after a huge run up. Similarly the other wonderful investments over the past few years have seen sell-offs. I'm getting tempted to get back in at these prices, I've been nibbling, but I'll wait for a sign of a sure turn around (like Time Magazine proclaiming "Gold is Dead!") before committing my full nut.