Depends on your purpose. If you are a short term speculator using leverage.......... well let's just say the bullion banks know as much about charting as the hedge funds do and have an uncanny way of relieving said funds of their money. Watch the marker action immediately before option expiration dates to see what I mean.

If you are a longer term investor the fundamentals look good.

Here is an interview with Jim Rickards , who I always enjoy listening to, with some long term insight. Most of the interview is not about gold but the information is pertinent anyway. If you are interested in the inflation/deflation debate there is also information.

If you don't own any gold or silver allocating 5-10% of your invest-able long term money would not be an imprudent move in my opinion, if you can afford the risk funds. Don't borrow money to do it. Buy it and forget about it. I like CEF , Central fund of Canada . About half gold and half silver, you pay a premium for it, but no more than a dealer markup in buying coins. Gold & Silver are considered collectibles by the IRS and are not eligible for capital gains treatment so gains are treated at ordinary income. CEF is structured as a closed end fund and its gains can be capital gains if held the appropriate time frame. This gives it a significant advantage in my opinion, the tax savings offsetting the premium paid. Their bullion held is independently audited. GLD and SLV are not audited and are are most likely fractional reserve which kind of defeats the purpose of owning the metals. Not to mention the fact that the banks that are the  funds trustees are also the largest short holders in the metals.......if it smells bad fishy, best not to eat it.

John