Gold is high and could be headed higher, but that does not make it a great investment. Gold is priced well above the cost of production, so its value is more determined as an alternative to traditional investments in an atmosphere where the fear of inflation, if not the reality, is motivating the valuation.  Gold delivers no dividend and pays no interest and being valued by emotional fears may be subject to substantial volatility. If interest rates do climb ( and they really cannot go lower) then the costs of holding gold also climbs, and could drive gold prices lower.

Since gold is valued well above its production costs as a hedge against the fear of inflation, a buyer today who hopes to sell at a higher price in the future is hoping that someone else will have a greater fear of inflation that a buyer today would have.  That may happen but it is not a sound investment strategy.

The constant barrage of companies promoting gold on nearly every media outlet seems more like the activity associated with a top in the market than a bottom.  If money is so worthless and gold is so valuable then why is the dealer so willing to exchange his valuable gold for a mere $1500 an ounce?

If it is a bubble it could still go much higher, but if fear is the driving force it could be dangerously volatile.  At today’s price I would not overweight it.