Comment: Gold is not an end-all investment

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Gold is not an end-all investment

Gold is a useful investment as a piece of an overall investment strategy - I too believe that the dollar will continue to fall but unlike others in here I think that decline will continue to be gradual for at least the next couple of years - largely because the world has no alternative to it right now as a currency of world trade - the Euro sucks as bad or even worse than the dollar, the Chinese refuse to allow their currency to trade at its true value, there are not enough Japanese Yen on the planet to replace the dollar and all the other schemes to replace the dollar with a basket of currencies may sound feasible but no one knows exactly how to do this - so the dollar will get a reprieve for a few years still before judgment day arrives.

But getting back to an investment strategy - I like real estate because it is depressed in price right now but you have to be careful of the potential exposure to on-going and sure to increase property taxes associated with it. Stocks of natural resource related companies especially energy companies are a good bet right now and pay very good dividends which are not totally useless yet and then gold can be a hedge against a sudden collapse of the dollar but I don't like buying gold mining shares - they normally pay little or no dividends and they don't achieve what physical gold does for me - physical gold is to a large extent "hidden wealth" - an asset that is not entered into someone's computer data under your name and social security number - thus in a real disaster it could be the one asset that could give you time to ride out the worst of the disaster.

I think the 10% rule for gold is good - I try to keep gold coins equal to 10% of my stock and real estate holdings.

Make sure though that your wife or next of kin know how to find the coins should something happen to shorten your stay on this planet.