Ric Edelman: Gold prices are near record highs and many people are promoting gold as a can't miss investment that will protect against inflation and a weak dollar. But the truth is that buying gold is speculative and you are not guaranteed to make money. In fact, you could just as easily lose money. Just look at the last big gold rush. After a long run up in the 1970's gold hit a record in 1980 of $850 an ounce, according to the New York Mercantile Exchange. Then prices fell and continued to fall for the next 20 years bottoming out at $252 an ounce in 1999. It took another seven and a half years for prices to get back to the 1980 high. In other words, if you had bought at the peak in 1980, it took you 27 years to get all your money back. And unlike stocks, bonds and real estate, gold pays no dividends, no interest, no income. But what about inflation? Does gold protect you? Don't be so sure. From 1979 through 1984 inflation is measured by the Consumer Price Index rose 7.

6% per year. Gold rose just 4% per year, not exactly the protection you were looking for, is it? What about the weak dollar? Well, from 1988 through 1992 according to Bloomberg, the dollar fell 8% but gold prices fell 29%. The lesson is clear. Gold is not a magic solution to protecting your money. Think about this before you decide to start buying gold or gold coins.