I think the title says it all. In a time of inflation, gold is often seen as a good place to park some money so that it won't lose value as the currency does.
There are several ways to buy gold. Some that I know of are:
Gold Coins
Gold Bars (taking physical possesion)
Gold certificates ( no possesion)
Stock in Gold mining companies.

I think that you pay a buyer's premium AND a seller's premium when buying and selling gold.
What are the pros and cons of each method. Some, I know--actual gold bars are not easily turned into liquid cash, and usually involve larger sums of money. Gold coins are more easily bought and sold--but how does one know the true value of a coin? Is the collector value more than the gold value, or what?
Is owning stocks or gold certificates really any better than owning stocks in a blue chip company? Some large, secure company like, say, GM for instance, or Bethlehem Steel to name 2 in the not too distant past.

I've watched as my 401K has dwindled to a fraction of its former value. I am thinking Gold might be a good hedge against the coming inflation for a portion of what is left.

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1982 300SD " Wotan" ..On the road as of Jan 8, 2007 with Historic Tags