All the precious metals (PM) tend to track in a similar manner, though industrial metals like silver tend to be more impacted by how the economy is doing. Investing some portion of you portfolio in gold or silver is a good hedge against major hits to the market, not as an investment, but as a means of preserving some wealth in the case of a major slump in the economy. I don't agree that Gold has reached a high and is about to go down. I think it still has a ways to climb; some of the folks I follow believe we are likely to see $2000/oz in 2013, and perhaps as high as $3000 by 2014. However, I wouldn't put every dime into it. Like oil, gold is traded in $US, and has an inverse relation to the value of the $; so, if inflation (i.e. rapid devaluation of the dollar) kicks in big time, gold and sliver will keep pace, regardless of what the stock market does.
On an interesting aside, I seem to recall that the Bible makes a reference to an ounce of gold buying a fine suit of clothes back in ancient times. Today, a fine suit can run upwards of $1500...not far from today's price of an ounce of gold. Hmmm...
Regarding how to invest in gold, there are a number of ways. You can buy physical gold (bullion or semi-collectable coins), or an gold ETF. You can even roll over an IRA into physical gold (held in a depository) without paying any taxes or penalties.
