How does gold not have good fundamentals? There are many good reasons to own gold, as mentioned by Thommo25 further up thread. Gold is the traditional store of value for thousands of years and can't be created out of thin air, unlike fiat currencies. Most of the world's major economies are (the US in particular) increasing the money supply massively, trying to shore up their financial systems and ride out the credit crisis.
Sure, gold doesn't do anything. That's the point, if you just want to sit out and protect your wealth while the markets (property, equities, whatever) sort themselves out. But what you'll find is that as you go on is that you'll have more dollars, pounds, euros, whatever competing for the (roughly) the same amount of gold. You say gold isn't rare, but it's not easy to get a hold of either, with ore grades generally less than 5g/t.
What *is* of more concern to the gold bugs and is mentioned on another thread on HC is the IMF dumping 1/8 of it's gold reserves, which would skew the supply/demand and could affect the price. The IMF can only do this to a certain extent though, because they only have a certain amount of gold. The Fed however, can make an infinite amount of $, should it wish to. They've already "created" about $100Bn (and don't think the same isn't happening to the AUD), where do you think inflation comes from?
