There are few places where one can find an honest assessment of the risk of any investment. Most often, slick marketing talk usually drowns out sensible information and, for investors, this is not at all helpful. Given the collapse of the housing bubble, investors are likely better critical thinkers than ever before. Gold investment oftentimes appeals to those who think before they buy. The reasons this metal is valuable provides and interesting way to compare it to other types of investment. For the length of time gold investment has endured, however, there is nothing that compares.
When individuals decide to put their money into gold—or other precious metals, for that matter—the investor is betting that the demand for the metal, and thus the value, will increase. One need not make this assessment based on their “gut”. Gold is in high demand. It is used in technology extensively and has unique properties that make it particularly suitable for precision applications in very harsh conditions. If any alien civilizations ever run into the Voyager probe, they will find the greeting from humanity inscribed on a gold plaque. Barring getting melted down in a sun or sucked into a black hole, that gold will shine as brilliantly for those alien civilizations as it did on the day it was launched.