Mark Hulbert wrote a shockingly inept article for Barron's online which expressed reasons not to own gold: 5 Reasons Not To Buy Gold.
... Now, onto the primary reason to buy gold: it's a time-tested hedge against rampant Government-motivated fiat currency devaluation. Let's use the U.S. dollar since we live in this country and buy goods denominated in dollars. The U.S. dollar index hit 121 in mid-2001.Currently, it's hovering around the 80 level. That's a 33.8% decline in the value of the U.S. dollar relative to currencies that make up the index. At the same time, the price of gold in mid-2001 was $270 per ounce. It's currently $1650 per ounce. That's a 611% appreciation in price vs. the U.S. dollar. In other words, the U.S. dollar has lost 83% of its purchasing power relative to gold. That's a remarkable fact and one that gets no mention anywhere in the mainstream media. ...
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