Brief Vanguard article - The benefits and risks of owning gold
Posted: Thu Jan 02, 2014 8:37 am
Which says, and I quote...
That sounds an awful lot like stocks, bonds, or any other investable item...Gold has been a part of economic life in many cultures going back thousands of years. As an asset, it tends to be particularly attractive during periods of economic uncertainty or political instability. Obviously, some investors have done very well by owning gold at various points in history. Others have caught "gold fever" just as prices were peaking and then watched their investments plummet in value.
At Vanguard, we encourage clients to be cautious about gold and other commodities. Almost by definition, commodity prices can be extremely volatile—rising and falling rapidly based on changing economic and political conditions, and on the whims of the marketplace.