Some may argue that they can avoid volitility and the risk of loss by staying in "safe" accounts like bank cds, annuities and government bonds. But the trouble with this logic is that they are denominated in dollars and the dollar is steadily losing purchasing power. Yeah, you have the same amount of dollars, but they are losing value relative to the would in which you live, as the following graph points out, if you stayed in "safe" investments since 1993, you have lost 20% and don't even know it.


Source: World Gold Council CLICK CHART TO ENLARGE