'Why buy gold?' is a question often asked by potential investors in gold bullion and coins.

“Gold has been popular with investors for centuries,” writes Ken Little in About.com: Stocks, “Many modern investors turn to gold when the economy sours as a defensive play.”

“In times of economic uncertainty, gold is, well, the gold standard for safety,” continues Little, “Gold is a haven in times of inflation because it retains its value much better than currency-backed assets, which may climb in price, but drop in value.”

Investing in gold is very different from buying stocks or bonds. You can take physical possession of your gold investment by buying either gold coins or gold bullion. In other words, you can hold it in your hands. Physically owning gold has a strong emotional appeal to many people. It has substance, unlike stock certificates which are merely pieces of paper -- as the crash of 2007 so clearly demonstrated.

An article in the Wall Street Journal (“Should You Buy Gold?” by Shefali Anand, May 28, 2010) says that, “The last decade has been a particularly good one for gold, for several reasons. Due to the U.S. economic collapse, large investors have been buying gold lately because they believe that even if the world economy continues to suffer, gold will have some value.”

Similar to an insurance policy, writes the Wall Street Journal, “gold becomes extremely valuable when some major event happens because it can be resold even in time of disaster.…it will help you get some money even if there's a war or there's a breakdown in government.”

A report in CBS New.com written by James Pirceno (“Should You Buy Gold? No One Knows for Sure, But the Bullish Case Remains Compelling” Dec. 9, 2009) says that even at the high prices, “gold’s charms are still alluring.”

“Historically, gold has been the asset of choice for people who lose faith in their currency,” writes Pirceno, “Owning gold is increasingly seen as a hedge against the hazards that come with holding the dollar.” David Levenstein, a precious metals analyst at Lakeshore Trading in Johannesburg, South Africa, predicts that, “when we see inflation kick in as a consequence of the huge stimulus programs and massive escalating deficits, gold will soar even higher.”