The question should be "Why would people buy gold at almost $1700/ounce?!?!?"
Hmmm let's see...
1) Because the Federal Reserve has expanded the money supply by a ridiculous amount and the dominant view among economists is that a recession can only be combated through more inflation.
2) Because the President's budget plan never balances the budget. Red ink for as far as the eye can see.
3) Because the opposing party's "star" budget plan doesn't balance the budget for DECADES to come.
4) Because the United States suffers from having two unfunded but politically popular entitlement programs which are destined to bankrupt the federal government.
5) Because government spending has been rapidly increasing, no matter who is in power.
6) Because several state governments could be possibly pushing to the point of bankruptcy, and then might need bailouts.
7) Because the financial system is even weaker now than it was before the crisis, and thus might receive massive bailouts to the tunes of trillions of dollars.
8) Because the federal government is already on the hook for trillions of dollars in the case of another panic.
9) Because the federal government is facing political gridlock where the only thing the two parties can agree on is to increase spending year after year.
10) Because the governments in the United States at all levels have been taken over by special interest groups seeking to enrich themselves on the back of the taxpayer.
11) Because the political sentiment to change all of this before things start getting sour simply does not exist at this point in history.
Want me to keep listing?