From Jim Rickards, Editor, Currency Wars Alert:

I only know of two men who really understand the true value of gold — an obscure clerk in the basement vault of the Banque de Paris and one of the directors of the Bank of England. Unfortunately, they disagree.

— Lord Nathan Rothschild

Money is gold, and nothing else.

— J.P. Morgan

Nobody really understands gold prices, and I don’t pretend to understand them either.

— Ben Bernanke

These quotes illustrate the perennial challenge that investors face in deciding what role gold should play in their portfolios. Few understand how to value gold, and even fewer understand that gold is not really an investment — it is money. Of course, if you want a portfolio that preserves wealth, money is a good place to start.

Saying gold is not an investment may seem strange, especially since I recommend some gold in an…