Why buy and hold gold?
''The dollar has been firm, and the euro has been very weak. That's a negative situation for gold. Yet, some how, mysteriously, despite the cat-calls of gold-haters, December gold has held above the 1800 level. There are a lot of reasons why people buy and hold gold, not all of them based on chart action.
Some people hold gold as a hedge against all-out inflation. Others hold gold as a defense against a Fed that appears to have lost its monetary compass.
Still others hold gold as a symbol of eternal wealth. After all, during the last 5,000 years just about every other entity from wagon wheels to GM has gone broke. Other items come and go, but only gold is eternal. There never was a time when a population as a whole scorned gold (except for the US following WWII).''