Precious metals are only a hedge against inflation. They have their place, but not as a primary position. You cannot invest in Precious Metals. If you buy and ounce of gold, in a year it will still be an ounce of gold. The only thing that changes is the value of the dollar. If you invest in physical assets that produce income, in a year you still have the asset, but you also have the income. Rental property is a good example.