I agree with most of what you said ctindale regarding the seriousness of the situation, that said given that I'm young and any hit I take can be recovered over 50+ years (hopefully!) then I'm ready to do what it takes to increase my wealth.
Regarding the seriousness of the situation, what is the worst that happens in Australia ctindale in your opinion? Will we see 30% unemployment? Will Australia end up in depression? Will our currency collapse? You claim that the US price of Gold is not relevant here (though Gold is rising in most currencies, so that point is mainly moot), but then refer to global imbalances without really giving us your expectations on what that means for Australia...will we really need to bunker down here? Stock up on guns and food?
Personally I am not looking at my Gold investments as a way to turn $ into more $, I am looking at riding an asset bubble that should increase in price against other assets that I would like to get into.
For example property is one asset that I would like to re-enter at an appropriate time (after selling earlier this year). With Gold underpriced and housing overpriced I see investment in Gold related assets as a way of entering that market again with less of a (or no) mortgage burden.
I don't think a hyperflationary environment would be required for Gold to reach heights of US$3000-5000. If hyperinflation occurred in the US we would see a lot higher price than $5000. Just look at Gold charts in previous hyperinflationery environments...
1980 inflation adjusted high in Gold is over $7000 using shadow stats figures, so I think ridicule of the price getting to $5000 (because the world would have to collapse for it to happen) is an absolute load of rubbish.
