Originally Posted by Amnorix
Inflation has been <5% for many years now. The risk is that the value of the dollar is becoming increasingly worthless due to the Fed pumping cash into the system for a long while. There is an overhanging threat of dramatically increased inflation in the long run if this continues.
That is why people like BEP and TJ are so into gold. In theory it's an inflation hedge. There are many other inflation hedges, including the far simpler inflation protection type index funds.
Would you agree that it's essential to a diversified portfolio to have some investment in commodities like gold or silver? And what percentage is a good "hedge against inflation"?