If everything else remained the same, it would be a static investment. It doesn't provide any income. People invest in gold because they don't expect things to stay the same. At times of political uncertainty, the gold price goes up. When people lose faith in paper currencies, they buy gold. The down side is that when things stabilise, the gold price could fall. History suggests that it won't fall very much, but investment history is unreliable.

If you're a UK tax payer, it's best to buy gold coins that are legal currency. If the price goes up, there's no liability to capital gains tax. Sovereigns and Kruger Rands sell at a premium to their gold price for that reason and the risk is that the premium may get smaller.

Gold has never been a good long term investment. It does not beat the stock market or inflation. I do believe it is a good short term investment because it ...

I have no idea what makes the price go up and down. I can't figure it out.

Stocks are more straightforward. When the economy is good, they go up. For this reason, I would stay away from gold.

Buying gold as part of an overall diversified portfolio is a smart investment.

The value of gold on average keeps pace with the inflation rate. That is better than burying your money in the back yard, but not by much.

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Bullion is not suitable for those who have to ask about it.

It would be, if you know when to buy and when to sell, as the price moves in both directions. If it was easy to predict the movement, everybody could get rich.