Aside for being a natural hedge for inflation and currency devaluation, I view physical gold as the ultimate form of wealth insurance. It is very liquid and widely recognized by almost all countries. As an investment vehicle, it's a great diversifier. Gold prices soar when everything slumps.
There is this industry belief that no asset goes to the moon without a few big declines to scare everyone.
The precious metal is on an uptrend since 2001. It trotted from US$250 per ounce to US$450 per ounce in 2005. It doubled in just over two years to breach US$1,000-per-ounce level.
As seen from the chart, there is a short-term decline in the price of gold. And the price could fall even farther and still be in "bull mode".
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