||When looking at a long term investment, such as gold, ask yourself a few questions.
If I bought gold in year X (pick a year) and held it for 10, 20 years, how well would my investment have done. Of course had you bought stocks the day before the crash, any crash, 1929, 1987, or 2002, you'd be unhappy for a time, but my timing article showed that in the stock market, it doesn't take long to make up for the bad timing of a purchase. How long before gold reaches its peak of 1980? Maybe never.
Next, ask yourself what is driving the price of your investment up? A basket of stocks (by that I mean a major market index such as the S&P or Dow) is made up of companies with earning from selling either a service or product. Successful companies will sell more each year, and increase their earnings. Gold provides no return, no dividends.
If you believe the dollar will continue to fall, you can certainly choose to hedge against this. Buying international mutual funds or ETFs is one way to do this. You will hedge against a falling dollar while staying invested in income producing assets.
I find it interesting that most literature trying to sell you gold will use vague expressions such as "the dollar has suffered a 30% decrease in value". Really? Over what time period? Further, it's claimed that gold "is the ideal and tangible asset with zero negative affects on its value." Huh? I suppose that given the choice between keeping a box of cash in my basement or buying gold bricks, I may very well choose the gold. But that's not the choice we face, and the numbers tell me that in the long term, nearly all other asset classes provide a higher, safer return than does gold.