Investment in gold

I just wanted to do a quick post on gold today. I'm still see incredible bullishness in the gold bug camp.
I think most inflationists assume the incredible expansion of the Fed's balance sheet is going to immediately lead us into a hyper inflationary environment.
While I agree that this will be the eventual outcome and this is exactly the unintended consequences that are going to result from the Fed's current actions I don't think it's going to happen quickly.
I have a feeling all the gold bugs loading up on gold right now are going to be too early and probably end up selling at the exact bottom.
I'll remind everyone that the main source of demand for gold is jewelry. I don't see that demand skyrocketing in a deflationary environment or with unemployment over 10% (where I expect we will be at some point this year). Actually if unemployment were still calculated in the same way it was several years ago we probably already have over 10% unemployment.
There will come a time to buy gold and silver again but I think it's probably still too early at this point

Gary: fwiw, from Flecks site from a knowledgeable subscriber -
Another "technical" tidbit: As you know, I've been technically bearish on Gold for some time now and the picture remains negative. We've seen four lower tops in the metal at 1000, 975, 910, and lately 875. Each of these peaks have been accompanied by valid "sell" signals in March '08, July '08, October '08, and again last week - Jan '09. All of these trading tops have taken place within the confines of a primary bear market profile for the metal - AT LEAST IN DOLLAR TERMS. The charts look more bullish when measured in assorted other currencies. The point being that the dollar-gold relationship is well established - for holders of dollar denominated assets.
The big problem for me is the fact that our US Dollar toilet paper remains superior to the other toilet paper currencies, with minor exceptions like the Yen. However, as some of your readers have pointed out, we may not be in very good shape but in the brave new world where the term "absolute" has been banished in favor of "relative" in all things financial, continued dollar strength can not be bullish for the dollar denominated gold price. Maybe this is what the chart is trying to tell us.
A final note: the "seasonally bullish time for gold is traditionally from about October into early Spring. If we're seeing weakness this early in the "season", maybe that's another warning sign. In any case, if this down trend continues into the weak season this Spring and Summer, the major support level for the metal looks like about 600 plus or minus.