This is what I mean about "preservation of capital". This is why I don't mind when people giggle when I tell them there's gold in that thar long term portfolio. This is what I've been talking about on this blog since it started in March.Gold doesn't make you rich; it stops you from becoming poor. That's all one can truly wish for in a bear market. Up 5% in a year like this year? Yep, I'll take that happily. Dreams of untold wealth from investing in gold as spun by the goldbug mob? Those people give gold investors a bad name.
UPDATE: As if done to order, here's a smart person talking sense about gold. Cam Hui's post about how a return to the gold standard is a bad idea is packed with common sense and solid argument. Easily digested, too. Well worth reading.