the US has averaged 5% inflation per year, since about 1970

[swank]

if you don't CLEAR 8% or better, every year, after tax and Social security (if you don't use a corporation to invest) with all your investments, you'd be ahead to just sit on bullion gold coins. Sometimes gold lags the market, and then there's a BIG leap in gold's price. many very experienced traders are blind about gold and this ridiculous "economy' and all the deceptions built into it by multinational corporations and the politicians. If you can't make at LEAST 3% over the inflation and taxes, WHY risk your money?  Me, I want at least 7% over the inflation rate, or I'll just sit on gold and real estate, and only high return Real estate.  The other stuff  is just not worth the risk.

[Pointedstick]

Gold is good. That's why it's 25% of our portfolios! 

8% nominal / 3% real sounds like the lower bound of the average PP performance to me.

[k9]

Swank, what makes you think gold will let you achieve, on the long run, 3% over inflation ? It is supposed to follow inflation with a lot of volatility, but trying to capture that volatility sounds a lot like market timing ; it also supposes you rebalance from time to time, so you need another asset to do so : which one ? Real estate doesn't seem a good candidate for rebalancing...

Finally, you say you don't want to risk your money but talk about gold's volatility ; isn't risk & volatility quite the same ?