This article speaks volumes to me. It is concise and clear. I feel that you will find it a good read. From the article written by the folks at Finance and Economics .org. It is entitled Why Gold is better than Cash. From the article - this says it well - a statement I agree with: ....owning fiat cash is the speculative position, not ownership of precious metals.
This sums up the problem. Instead of gold, people commonly think of paper money as the only medium of exchange and as a store of value; cash is after all their unit of account. They see the gold price rising when they should be seeing the value of paper money falling. Because cash is everyone's unit of account it is wrongly seen as the ultimate risk-free asset. This is also the fund manager's approach to investment: his investment returns are calculated in paper money, so he cannot account for a superior class of asset. He is also taught to spread investment risk across a range of inferior asset classes to enhance returns. Therefore the investment manager wrongly assumes that precious metals is one of those inferior asset classes. All modern investment management works on these assumptions.
Finally, the question is asked on when to sell the physical gold that you are (and should be) accumulating: So if anyone asks you when you might take your profits in gold and silver, smile sweetly and just say, When paper money stops losing its value. Get your golden coins and silver coins at Lear Capital.