Some potential disadvantages or risks of investing in physical gold bullion include:

• No yield – Gold bullion itself does not generate any interest or dividend income. The only returns come from price appreciation.
• Volatility – Gold prices can be volatile and fluctuate based on factors like the US dollar, inflation, geopolitics and demand.
• Illiquidity – Physical gold can’t be sold as quickly or easily as financial assets like stocks or bonds. Selling may involve delays and fees.
• Storage and insurance costs – Safely storing physical gold involves costs for a safe/lockbox, security and specialized insurance in case of theft or damage.
• Harder to diversity – Constructing a diversified portfolio is trickier when using physical gold versus more liquid financial assets.
• Questionable pricing data – Some critics argue the gold market lacks transparency, and price discovery may be manipulated.
• Geopolitical risk – International conflicts or crises can influence gold supply and demand unpredictably. This injects more volatility.
• IRS reporting requirements – Certain tax reporting rules apply when buying or selling gold above certain dollar thresholds.
• ETF risks – Investors also face risks from factors like the fund manager if owning gold through ETFs rather than direct physical ownership.

While gold bullion may have a role in a diversified portfolio as an inflation or disaster hedge, investors should weigh these disadvantages before making it a major component of their assets.