Normally I would agree with that but with the major currencies (Dollar and Yen) at the tipping point of spiraling downward. With that in mind, gold is what people tend to flock to for security during such times.
Gold really is a hedge against inflation. When commodities become stocks and hedge funds become stocks and stocks become a kind of public currency for wealth building, gold trails them from a distance, sometimes jumping ahead a block or two, but always near by. It watches bemusedly as people measure their new wealth in the latest currency du jour.
Gold, which has always been and will always be money, has seen this show a thousand times before. It knows how it always ends. The assets which have inflated the egos, expectations, and bank accounts of the newly duped eventually collapse in deflationary spiral. The supply of the new currency- whether its dollars or shares-eventually becomes so large and divorced from demand, and real economic value, that it becomes worthless.
“Gold never really ‘goes up.’ It simply holds its value while the values of other things are collapsing due to inflation and currency devaluation. Many times, in the 1960s or 1990s for example, it is the most useless of assets, sitting inert and generating no income. In inflationary periods, this inertness of value is gold’s most admirable quality.
