I believe in a well rounded family of assets, this definitely includes Precious Metals (PMs). The question is to what degree. I have watched people go back and forth on this issue and the only conclusion I have arrived at is that some PM is part of any well diversified portfolio.
I am fond of the 50 : 1 ratio of silver to gold, and strive to keep to some semblance of that goal.
My current PM holdings consist of;
Recently, I have been buying platinum. It is below gold currently and therefore likely a better value.
I have capital set aside to purchase more Gold, but I am waiting to see it drop below the $1,200 threshold. I also have a decent variety of Rare Earth Metals, but they are difficult to put a current value on, so I keep those mostly as a collection rather than an asset.
Current Prices; Precious Metals
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I also believe in physically holding my PM rather than paper ownership from halfway across the country. This is a good secondary reason for constructing your very own Panic Room. A part of my brain will always have to admit that the percentage of my portfolio kept in precious metals in a hedge against inflation, but also a backup for an end of the world scenario which I am unashamed to confess I think about way to often to not be considered a paranoid hobby of mine.