Peter - I encourage you to read the active thread on the question, "Should I invest in gold?" that can be found here: http://www.brightscope.com/financial-planning/advice/question/1147/should-i-invest-in-gold. Your question is essentially a follow-up question about timing. As with all investments, you should familiarize yourself with the value proposition and the risks associated with the opportunity: What do you hope to accomplish by investing in gold? How much of your portfolio do you plan to allocate? Will you adjust your allocations? Under what circumstances? Having answers to these questions will help you determine whether the timing is right, or whether it is even a good idea at all. Best of luck.
There was a time when gold was looked at a hedge against inflation. However due to the access from gold exchange traded funds and other speculators gold has become a lot more actively traded and has become much more volatile. I believe the market is mostly efficient and therefore the only way for you to benefit from stock, bond or commodity prices is to be diversified properly. I am not syaing that I never speculate at all but be very careful and understand you may be exposing yourself to a risk that you are not being properly compensated for taking. If you are debt free, your retirement accounts are properly funded and your childrens education is funded. If you have the proper amount of life and disability insurance and feel that you are prepared for 6 months of expenditures in your emergency fund then by all means speculate a little if you wish. If you can't answer these questions with a yes then get back to investing and stop trying to catch a falling knife.