Speaking as a person in the jewllery industry here in Canada - I wouldn't be buying gold for investment. It's too volatile right now. Plus it seems to have flat lined around the $1600 USD mark.
Gold is inversely proportional to the economy. If the economy is bad and people don't have confidence in it, they buy gold. The opposite is true when the economy is doing well - they don't pay attention to gold.
In Canada, we've not been hit early as hard as the US. That being said, our indicators are that things are on the mend - slowly - but mending none the less. Personally, I think gold will drop over time right now versus going even higher.
Just my opinion. I've got my investments with other stuff like mortgage pools, etc.