Smart people (both the central banks in China, South Korea and many other countries, as well as wealthy individuals and not-so-wealthy individuals) are buying physical gold. I have 34 ounces of physical gold in the form of coins -- mostly Eagles. I couldn't care less what the price of gold is from day-to-day. I didn't buy gold as a short-term investment. I bought it as insurance against a financial catastrophe . . . which is the exact same reason that central banks around the world are increasing their holdings of physical gold as fast as they humanly can. Buy on the dips and hold.