This bold comment made in 2011 probably seemed smart amidst a sharp gold rally following the credit crunch (Great Recession). In fact, these years later, There’s been very little price inflation in measured items and one may still hold a metal that doesn’t pay dividends, and only seems to grow in times of extreme financial distress.
One could argue buying gold to wait for that would be poor judgment when they could buy assets that are experiencing favorable tail winds and enjoy substantial growth in asset value.
So, the debate is protect the lesser-valued portfolio from a 1,000 year storm, or suffer typical market swings (maybe engaging a good asset manager) in a high Alpha strategy? I would take the chance to grow my stack.
ex: start with 1,000 add no dividends for 7 years and what is that worth? yes, about where you started most likely, absent a global meltdown. or, start with the same 1,000 in just a large cap index (say the SP500) and see it fly. You have tons of chances to take profits and pool cash for a rainy day.