Yes, that's the problem with owning gold since other than jewelry, its only real use historically is as money or backing for money. A tiny amount is used in electronics, but it's negligible. So the question is when will gold return to be a backing for money, ala the Bretton Woods system or something similar? The world's central banks still own a huge amount of gold, so they obviously see it as having value. The new BRICS currency being set up will reportedly be linked to gold, and once operational this could force the dollar and euro into a similar arrangement to remain competitive.
Jim Rickards recommends having 10% of one's investible assets in gold. It's tough to sit in gold when you can get 4-5% in Treasuries or the money market, so it's a dilemma. The timeline for the BRICS gold-linked currency has slipped, but with the US debt now parabolic, I figure it makes sense to at least have something in gold. Silver also seems logical since it usually follows the gold price loosely, and also has many industrial uses, in solar panels, etc. But as the saying goes - 'everything in moderation' :o)
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