This is true but there are ways to invest in gold without actually buying the bullion itself, for example you can buy into funds which themselves own gold mining companies, jewellers, Cash4Gold etc. and thus get a layer of insulation from that risk. All I can say is fair play to the people who have made money on gold so far, but I have to say that currently gold is a terrible investment. As a contrarian invester it's way too expensive for me, and is likely to see a downward trend as economies recover. There are cheaper assets which are more likely to trend upwards over the next few years. There's also the fact that unlike many other investments you cannot derive an income for gold, in fact some people refuse to refer to it as an investment, rather a 'hedge'. A true investment, like a stock or a bond, delivers a stream of income which is where most of the value comes from. Gold is a bit weird in that regard. e: also as a final note, when you see a thread on a forum devoted to computers about how great an investment gold is, that really, really screams 'BUBBLE!!!' The trick at this point is not to be the greater fool.