[TtC]

Gold may be important because, in my opinion, besides that fact that nearly every currency in the world is fiat, all of the spending of the USA for firstly, the "Bailout" and secondly, all of the social programs Obama wants to implement will seriously devalue the dollar making gold a hedge against inflation.

Look at it this way:

The Bailout has taken so far about five trillion dollars after including some of the previous things added like Freddie Mac, etc. The implementation of Obama's "plans" will likely cost another three to five trillion, provided he keeps those promises, which is doubtful.

Where did all this money come from? Nowhere; it was created out of nothing. You just devalued the US dollar by at least fifty percent in less than two years. They are adding zeros to the governmental bank accounts and running the printing presses 24/7.

If you trade currency or look at the charts on a regular basis, you will notice that the US dollar compared to say, the Euro, GBP, CDN, CHF, is moving within a somewhat moderate range of support and resistance. Essentially it is moving sideways. The reason the US dollar is still relatively high is because foreigners are buying US dollars to pay off US debts, because they see huge liability in the American market, which is correct. The same is happening with the Yen. The Japanese want their money back, thereby driving up the price.

If you look at the other, more stable currencies, such as the CDN, GBP, and the CHF and compare them on charts, you will notice that they are relatively stagnant, but not absolutely unmoving, compared to the USD. I will say that the CDN is a commodity based currency mostly, and the CHF is actually partially backed by gold, but you have to allow for some leeway when it comes to trading and spot prices.

Another thing that must be understood is that most people who trade are not professionals, most of them are actually computers that are programs to by and sell based on current pricing. A lot of real people who trade will sell at a loss in order to be out of the market, skewing the actual curve.

To make a long story short, the US dollar will most likely go to hell, and in order to preserve such wealth, a lot people are fleeing to gold and silver. But as I said before, the metal markets are subject to manipulation as well.

I still see no reason to be overly concerned about people selling their old and broken jewelry for cash because if something happens, it is hard to refine it without some sophisticated equipment and risk mercury or chlorine poisoning.

I don't think it is a ploy from the powers that be to steal people's gold. I think it is someone taking advantage of the market, and the lack of physical metal so they can make a profit.