In “Holding Physical Bullion Really Is Investing,” I argued that holding physical bullion was actually investing. I pointed out that gold has grown in value at an average rate of 5.7% over the past half century or so. But I did not address why it increases in value. That was really beyond the scope of the article, and beyond what Seeking Alpha really is about. But it is important to explain why gold, and other precious metals, do increase in value over time.« Continue »