The current rationale to buy gold continues to be fueled in large part by an investment cycle where notions of value become intertwined with a macro view of trends. Gold unfortunately shares the bubble characteristics made possible by the enabling of an investment super highway funnelling dollars from the greater population into dubious upside expectations. While there is no doubt certain world events could raise the price of gold, most of them have not been thought of and the most feared would probably be a selling opportunity.
Gold's attractiveness as an alternative safe haven for economic preservation has some major problems. If it is merely a substitute for dollars, then a substantial rise in the value of the dollar, which I believe is underway, will be craps for the shiny stuff. But if it is more than a substitute for US currency and rather is a fundamental demand/scarcity play, good luck. Those notions have been played and there is not a commodity market on earth which, from its all time highs, has not suffered a retracement of at least 50%. The declines retrace a winding road and run over all those convinced of its investment power. Gold has started down that road.
