Hedge Against Inflationary Cycles
Gold has real value. In the past, the U.S. dollar did as well since it could be exchanged for gold upon demand. During this time, currency was nothing more than a receipt in which a $20 bill could be exchanged for $20 worth of gold. Since moving away from the gold standard, however, our American (fiat) currency has lost all of its intrinsic value and much of its economic value as well.