"Be fearful when others are greedy, and be greedy when others are fearful." ~ Warren Buffett
The technical reasons for buying precious metals has been clearly documented by Clive Maund here http://www.safehaven.com/article/30105/gold-market-update and here http://www.safehaven.com/article/30104/silver-market-update
Why is this the bottom now? Vedic Astrology gives us the answer.
J.P. Morgan "Millionaires don't use Astrology, billionaires do."
Why Vedic Astrology? It works! Yesterday, Mars one of the main planets influencing gold/silver became visible to the eye in the sky, also termed rising, or becoming free of combustion. Consequently it's strength returned and now can/will support the precious metals. There are other astrological reasons why the precious metals will now do well. I will be long precious metals till August 11th. Then I will short the general stock market for a few weeks. Then I will rebuy the precious metals. From August 11 for a few weeks, I expect a modest correction in the metals.
Silver will outperform gold in the near term. Another very positive indication is the relative strength of the gold shares to the gold price (GDX to GLD).
While I think it is temporarily safe to own paper gold, eventually it will be worthless and only physical gold, safely in your possession will have value.
If you want to know what is really going on in the world, please check out these websites. I have no affiliation with them.