Gold is an asset class correlate to inflation
Gold is an asset class which has no income, and has mostly used in jewelry, and small amount in industrial products. What gold is most highly correlated with is the strength of the US dollar which is reflective of the US relative inflation rate versus other currencies.
With US asset deflation, gold will go down, not up. With a currency crises meaning that the US inflation rate is increasing faster than the rest of the world's inflation rate, then gold will rise. With excessive debt, the dollar could plummet, increasing the price of gold. So everyone should own no more than 5% of a portfolio in gold, but that's it.
In today's market, people have been selling their gold to pay off margin and offset losses. Not until the US deficit balloons out of control, will gold start to appreciate significantly, YMMV
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