Interesting stats on Gold as an investment/hedge:
...from 1836 to 2011, gold earned an average annual inflation-adjusted return of 1.1 percent. By contrast, they estimated long-term returns to be 1.0 percent for Treasury bills, 2.9 percent for long-term bonds and 7.4 percent for stocks.
... since 1975, the volatility of gold's return, as measured by standard deviation, has been about 50 percent greater than the volatility of stocks.
Despite gold's volatility, adding a little to a standard portfolio can reduce its overall risk.
Really? It's purely psychological in that case. However, the super Gold-bugs buy against a total collapse, not as a slight hedge against stocks and bonds. Should you gamble that they will never see the light or should you help to break the irrational psychology on gold?