@LeanLifeCoach: True, when you hear about a tragedy, you almost never hear about the local populace abandoning their national currency and trading gold for goods and services. It does sort of shoot holes in the ‘gold is a natural currency and will easily replace our fiat system following a national emergency’ argument.

@FS: Very true; in case of an emergency like a fire where I needed to flee my home quickly, I’d much rather grab a small fire safe containing all my important documents than try to lug around several pounds of gold (which may get lost or ‘misplaced’ during the ensuing panic). As for 20smoney, he did send me a small email saying that I raised some good points; I don’t know whether he’ll make a comment on this post himself, although I would like that.

@The Rat: As long as you know what you’re getting into, purchasing physical gold can be one way to diversify. Just have a plan and you’ll do alright.

@David: Good points; gold can provide diversification (although if that’s all you’re after, there are simpler ways than holding several pounds of gold bullion). True, gold’s supply is finite (at least, the easily accessible amount here on Earth is limited, although not exhausted yet), and there are no direct alternatives (although, depending on the application, things like silver, platinum, and even ‘lower’ metals like copper can do the same industrial applications (almost) as good, in most cases), but let’s remember, the reason it’s selling for over $1000 an ounce now is less because of its innate properties or industrial usefulness and more because people still associate it with money, even in our days of a fiat currency. If we sold it at a price reflecting its actual worth in industry, it would be selling for a price much closer to silver, around $10-20 an ounce at most.

Hope 20smoney stops by and contributes to the discussion!
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Honestly though, I would probably buy some gold, just not at these crazy prices.
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