You need to read the book "Tower of Basel" by Adam Lebor. It's about how the price of gold is controlled by the BIS. Therefore it is a suppressed asset that builds up pressure over time.
Ask yourself this, if gold is a non performing asset, then why is it horded by world banks and countries like America, China & Russia?
The answer is, when paper currency becomes worthless through excessive printing, gold is the only true money on earth.
I read someones comment above that said real estate performs better than gold, when Germany suffered from hyperinflation from (excessive money printing) you could buy a very nice house in a desirable location for 5 ounces of gold (do the math to see how undervalued gold is through suppression).
The value of gold will rise in one of two ways:
When the gold futures are no longer manipulated (unlikely). The futures markets are not manipulated, they
""are"" they manipulation.
OR when investors lose confidence in the financial system, and the value of paper money.
Everyone wants to wait until the uptrend is confirmed, the problem with that is the entry window will close very quickly, and there will be a short supply of physical gold (this will happen before the uptrend becomes obvious), the ones that get burnt will be the ones buying paper gold.
The other problem is investors over commit on their gold investment through greed, it could be a prolonged economic contraction, and many will have to sell their gold because they are not in a financial position to hold long term (loss of job or lack of other hard assets that can provide shelter).
There is a difference between a rise in the CPI and inflation, CPI can rise for different reasons whereas inflation is caused by excessive money printing.
My belief is the most important asset you can own is your home, not because it will grow in value, but because it means you don't have debts like rent or mortgage payments. The second most valuable asset you can own is gold, because currency has a well defined history of becoming worthless. If you hold equities that go through the roof in value, what will the compensation be when you sell your shares.........worthless paper! Do your own research, these are just my opinions.
