First off, gold reached a high in Q1 1980 of $800. Not 2500. And that was probably due to the storm around the Hunt brothers, Iran embargo, and other issues.
Second, if you look at the past 20 years, if you had purchased in 2000, today your stash would have increased by 377.59%, or $1605.71.
Everything goes up and down, but if you step back and look at the overall chart over the years, you will see a gradual climb. But the reasons to hold it are many, not as an investment, but as a savings account store of wealth. Holding paper money, you are losing at least 8% in purchasing power EVERY year.
Also, never go overboard. It's not a path to wealth, it's attempting to hold on to the wealth you have right now. It's good to diversify, I mean, I AM here in COOP still 16 years later! But the stock market can collapse overnight, gold will never go to zero.
Do what you will.
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