As an Amerc. living in Europe, is Gold a good invesment to protect me as the Dollar continues to decline?

I work in Italy and earn my living in Euro. I have investments in America that pay in Dollars. When I exchange Dollars for Euros I am always getting less. I see that as the Dollar declines in value, the price of Gold goes up. Is buying gold bullion a good investment to protect me against the decline of the Dollar in the long term?

Public Comments

1. Probably, if you have a large amount of convertible currency and need safety precious metals are always a good hedge.. The thing about "investments" is they appreciate, if the investments are in stocks the value of the stocks are based on the price the market will bear, not what the dollar can or cannot buy.
2. precious metals and gems have demonstrated over time to be the most secure investment one can make.. The only thing to fear would be the synthesis of such metals or crystals in a lab, thereby changing the supply/demand structure that has spurred growth for literally thousands of years... There is only so much available precious metals and gemstones in the world.. this rule hasn't changed for centuries. So, if there is a fixed supply, the demand will only go up... The only thing that would change that fixed supply would be synthetic creation of the commodity you are invested in.... And, if all that sounds alot like science fiction, its not as far off as you may think... synthetic diamonds are becoming more and more a possibility, nuclear physics does have a theory on changing metal structures at the atomic level (literally turning lead to gold), but its an uncontrolled reaction, and cannot be done at this time.. And then, there is always other planets.. what if mars turns out to have a huge silver vein just two feet below the surface.. well, that will flood the markets with silver once its mined and returned, and the price goes in the toilet... In the short-term, there is no safer investment than precious metals and gemstones.. but, in the long-term, who knows what the future holds, stay on your toes...
3. Need to calculate storage and security and conversion costs. The assay if in different formats may have to be factored. Coins some times are easier. Their conversion may be at face value rather than a function of verified purity. Any "real" investment would be a hedge. The issues are almost the same.
4. I'm guessing, but I think as long as the gold you purchase is very easy to convert to cash then it is a good investment. What good is gold if you can't easily and quickly use it to pay for the things you need? Also, it costs money to convert gold back into cash. I suggest you put a portion of your savings into gold, but not too much.