1.Gold is a nice insurance policy against a currency crisis and I think one is coming. When or what country kicks things off that crisis, I don't know, but I suspect it is more likely to be the Japan, Italy, or some other country in Europe as opposed to the US.
2.Gold, contrary to popular myth, is actually a great hedge against deflation in the senior currency (clearly the US dollar).
3.Physical gold is a currency that is not someone else's liability and cannot be printed electronically.
4.Central banks (not just the Fed) have been pouring on the liquidity as the global economy moves from one crisis to another. Odds strongly favor more coordinated central bank liquidity moves, and those liquidity moves tend to benefit gold in the long-haul.
5.Should the world return to a gold standard with a 100% gold-backed dollar, $1600 an ounce will likely look like an extreme bargain..."at http://globaleconomicanalysis.blogspot.com/2012/07/recent-gold-hype-sounds-like-grade.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29#PXV91z7q5U7bbFd4.99