I know we generally don't talk about the shiny stuff, but I think it's important to discuss a bit because things are getting rather out of hand now with gold IMHO.

I'm not anti-gold, but I think the vast majority of people who buy gold now will regret the decision. The pros know what they're getting into--and when to get out. The amateurs generally don't.

The fundamentals don't support the very high prices we have seen. Basically, it's fear and greed that have driven the price of gold into the latest bubble. Fear of a total collapse of fiat currencies, fear of hyperinflation, fear of investing your money in stocks or real estate, etc. And greed--"Look at how the price keeps going up and up!" It's the same greedy mentality that drove many people to buy homes in the past 10 years and either flip them or else use them as ATM machines.

Or just look at TV. When you see so many commercials about buying gold coins or how to "Turn your gold into cash!" or how often it's mentioned on CNBC, you know you're looking at a bubble. Remember, less than 10 years ago, gold was selling for only $200-something an ounce. Assuming the world doesn't end (I think that's a pretty safe bet), watch the price of gold eventually tank as people chase after the next bubble that comes along--could be oil again, or stocks, or TIPS, or anything besides gold.

Like I said, I'm not anti-gold. I think there is a legitimate place for gold in people's financial portfolios, but going hog wild in buying it now will likely lead to sorrow IMHO. Buy a little bit of the shiny stuff if it'll help you sleep at night, but don't cash out your 401(K) and go all in on Krugerrands.