There is a gold bubble right now exactly because too many people are giving exactly this advice.<p>Do you not recognize how often people used to say the same thing about US real estate before 2005?<p>If you want to hedge against <i>inflation</i> then might I suggest US currency?  It's remarkably stable and inflates by only a 3-6 points most years: <a href="http://www.inflationdata.com/inflation/images/charts/Annual_Inflation/annual_inflation_chart.htm" rel="nofollow">http://www.inflationdata.com/inflation/images/charts/Annual_...</a>