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[quote=Anonymous]For all the people arguing that gold is just a shiny rock that has no intrinsic value, the point of holding some percentage of assets in gold (and other precious metals) is that for over 5000 years of human history, there has been a consensus that gold (and silver) has monetary value.  For that reason many professional investors hold 10 to 20 percent of their assets in precious metals and PM stocks.  Note that governments hold most of the gold in circulation for the same reason.  It's basically a hedge against fiat currencies, which are tied to nothing except the collective good will of several billion people.  But when governments start to print trillions of dollars to "rescue" the economy, as the US and EU have done since 2007, the value of fiat currency is greatly diminished against alternative forms of money (such as gold and bitcoin).  So while gold does appeal to a lot of loony anti-government types (based on some historical reasons set out above) it is also good diversification to have some meaningful percentage of assets in alternative currencies, including gold.  I'm at about 20 percent right now because gold and gold stocks have done extremely well this past year, and probably will reallocate once gold hits new all-time dollar highs later this year.  Note that gold has hit all time highs in virtually every other currency previously, again due to governments degrading the value of currency by overprinting.  Good luck!  [/quote]

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