The 70's are a pretty good comparison, I bought some gold then too but only because I collected coins and stamps. There is no Paul Volker on the horizon to get us out of the inflation mess that we will end up in, nor any politicians with enough sense to find a Volker. So while I think you are right about exiting gold at some point, I think the deficits will have to be "addressed" with a nice dose of inflation first.
You hit the nail right on the head. The day I see a fed chairman talking like Volcker is the day I exit gold!
I disagree. I think inflation is now well under control because oil production has increased substantially in the last few years and will continue to increase, thereby reversing energy inflation. Most people on Wall Street understand this and this is the biggest reason why the stock market has been rallying since August. Advancing technology increases productivity and supplies off all products and services, and that is highly disinflationary. Once we can reduce our spending in Iraq and bring the federal deficit down even more, I think you'll see the economy really take off and the stock market continue to advance to new all time highs.