Don't fool yourself. Go to Zimbabwe and ask the common folks which they want in their hands right now. A SA Krugerrand or a loaf of bread. Me thinks they will go for the bread.
Nothing makes "precious metal" "precious" other than marketing. Read how De Beers created the entire diamond market.
When there is no food, food is the most precious thing. One's holdings should be balanced. I agree something has value only if we put value on it. But despite what economists and realists say, the metals have always returned to a value...that is silver and gold...despite the knowledge that you can't eat it. Women still desire it for jewlry and governments still transfer it for currency, I think metals will always win out over paper in the long run.
However, when things get back to "normal" a way to transfer at least a portion of wealth (one's blood and sweat) is not to own paper and, in the past using Europe as an example, those who have held the metal were able to have value. It's a matter of timing to preserve value.
If one believes and has faith in a government and currency and a currency does not fail for a couple of lifetimes it's hard to picture it failing. The last depression there wasn't enough money...now it looks like we're going to follow the South American/European models which bodes well for holding metals.
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