I helped a friend of mine buy some gold the other day, and since then it went up. He asked me what the prices were going to do in the future, and I said don't worry about it. The idea behind buying gold is to buy it and forget about it. Act like that money is gone and you will never see it again. Don't worry about the price because buying and selling physical gold is loaded with commissions and you have to have quite a spread before you can make efficient trading out of it. This is why markets don't like to deal with physical gold.
My wife asked me, why do you buy gold if you are never going to sell it? Why not just not earn the money? For a long time I didn't have an answer to that, but now I do. For every dollar you save, it's a dollar you don't have to earn in the future. Unfortunately the US.D is not going to sustain its value, so holding that would be really disappointing.
Wealth, at any scale means simply living on less than you earn, and stashing away savings. If you have savings, you're an investor.
