Some say that it doesn’t matter when you buy gold, that you should buy it regularly and always, and that it represents the only true store of value.  Fair enough.  When all is said and done, buying gold may be the only means of acquiring real wealth for the very long term.  Especially today, when all major currencies are devaluing by hook or by crook – some voluntarily, others not so – it behooves an investor to shore up his gold holdings.

Yet at the same time, from a pure investment point of view, it’s never a good idea to sink money into a depreciating asset.  That’s what the smart guys call “dead money.”  And when it comes to gold, which neither pays a dividend nor offers interest, a decline in value against other asset classes is not something we want to bear, if given the choice.

That in mind, we come (again) to comment on the current price level of the yellow metal, and to suggest what is to be done for those who currently hold bullion and/or gold stocks, and those who are considering making an imminent purchase.

First the case for immediate purchase:

1. Gold is a hedge against inflation (so they say), and we have massive inflation in the pipeline.

2. Gold is a safe haven and will rise due to continued financial troubles globally.

3. Gold is the only currency capable of replacing the fiat currency monstrosities now in use the world over.

4. Bullion supply is declining.

5. Investment demand for gold is underpinning a steady, unstoppable rise in price.  The chart below clearly shows the increased role ETFs are playing on the demand side – irrespective of the price of the metal.

And now the case against:

1. Weak fabrication demand.  Gold jewellery accounts for about 60% of global gold sales.  In times like these, though, it’s hard to imagine buying the dear Mrs. another dear piece of jewellery.

2.