Honest question: Why is gold considered a good investment?

[Doremus]

16. Dunno, but when governments collapse

and local currency becomes worthless, precious metals and jewels are among the things that people barter in its place.

I read a blog some time ago from a guy in South America who described day-to-day life after he woke up one morning to find that the government had seized all assets and his bank accounts were basically worthless.

Life beyond his front door became pretty dangerous at that point. One of his recommendations to others was to keep a stash of gold on hand for bribes and bartering. A relatively cheap gold necklace passed to a local police officer meant the difference between continuing on his way home or being beaten or arrested on trumped up charges.


Doesn't really answer the OP's question but if enough folks want to buy gold to stockpile as above the price would continue rising.