What do do with your dry powder

I posted a question in the comments saying that I am sitting on a substantial amount of cash. Although I am not totally out of metals I could buy a lot more, especially if I buy paper gold with 10x leverage.

However, we are late in the day in this recent rally. Isn't chasing the price a very foolish thing to do? In my experience it often does not work out well, but on the other hand if we really are seeing a bank meltdown in Europe then gold really could be the only safe place.

Opinions?