It depends on who you ask.
Take a look at this Canadian’s viewpoint: David Olive’s Don’t Believe the Hype over Gold
Is he right? Well, in some ways, he’s right. Gold does not pay interest or dividends while being held, and it is not liquid.
As for the investment value of gold, if you keep informed to buy low and sell high while also considering inflation, then your gold purchase succeeds. If you buy high and sell low, then, obviously, your investment fails.
On the other hand, an immeasurable benefit of buying and holding gold longer term is you’re not buying and losing in other markets. Granted, that’s not necessarily a good investment in a good economy, but when the economy turns and turns rapidly, having gold can be a good asset.
In some ways, he’s wrong. He claims an “almost infinite supply” of gold. That just can’t be true. “Infinite” implies never-ending and “supply” implies readily available, yet physical gold is difficult to acquire. Many people (individuals, businesses, banks, countries) choose to keep the gold they already have while mining companies find decreasing yield in raw gold from their mines. Neither of those situations presents an “infinite supply” of gold.
Of course, as the Canadian commented, you can’t buy groceries and gas with gold in a total apocalyptic environment. Well, an apocalypse is always possible, but not likely. People worry about asset protection when buying gold, not about buying groceries with a gold bar.
As a counterpoint to the Canadian’s article, take a look at this less emotional analysis of both the gold and silver markets: Gold to recover: New bull move ahead?
And another analytical view: Gold market update
So, is it best to be bullish or bearish on gold?
Your best course of action includes researching current markets and trends, understanding historical markets and impacts then applying knowledge of today’s economic and global influences to your investment strategies.
As a closing comment, you might consider collectible gold in your investment portfolio – gold that has numismatic value in addition to pure gold value.