Most people have this belief that gold is the safety net if the economy goes crazy. I believe this is a tribute of the US, adopted when it was on the Gold Standard.
If, you don't know what the US Gold Standard was, for every dollar the United States issued a certain amount of gold was stored in a bank to back it up.
It is argued that it will be the one true currency if the economy collapses, inflation goes to high, or the US Dollar becomes worthless.
My view? I don't invest in items that don't produce any income or is a resource that has any specific use that is needed to survive.
Warren Buffett shares a similar view:
Now, I'm not saying the price of gold doesn't soar occasionally, and everyone buys in.
What I'm saying is every time gold soars it ultimately has collapsed.
Historically stocks, bonds, energy commodities, and even real estate have outperformed gold.
I don't make this up, the numbers don't lie, and numbers show it is more beneficial to invest in the market than gold.