I understand this post is a bit old but I'm still having the same problem.

In Settings>Chat, there is simply no options for "Save chat history". It's 
never been available that I never thought having a history log was an 
option. The system would randomly send me an email after a chat once in a 
while. Please see below for the settings panel on my account. 


Chat:
Chat onChat off
Auto-add suggested contacts:Automatically allow people I communicate with 
often to chat with me and see when I'm online. Learn 
more<http://support.google.com/mail/bin/answer.py?hl=en&ctx=mail&answer=29795>Only
 
allow people that I've explicitly approved to chat with me and see when I'm 
online.Call Phones:Enable outbound voice calling. - Make phone calls 
directly from Gmail. Learn 
more<http://google.com/support/chat/bin/answer.py?answer=187614&hl=en>Disable 
outbound voice calling. - To also disable incoming calls, go to your Google 
Voice settings <https://www.google.com/voice/b/0#phones>.Voice and video 
chat:

Make voice and video calls to friends and family right from Gmail. It's 
free and installs in seconds.

Sounds:Sounds on - Play a sound notification when new chat messages arrive. 
Requires Flash.Sounds offEmoticons:Emoticons on - When an emoticon is sent 
:-) it will automatically animate.Emoticons off
Save Changes  Cancel







On Saturday, December 15, 2012 9:22:14 AM UTC+8, justkenneth wrote:
>
> Your chat history should be visible in a label called "Chats".  
>
> You may first need to make sure that your chat settings are enabling you 
> to save your history.   So click on the gear-shaped icon at upper right, 
> select Settings, then select the Chat tab and make sure that "Save chat 
> history" is enabled.  
>
> You might also need to select the Labels tab in settings and make sure 
> that you have the Chats label set to "show". 
>
>
> On Fri, Dec 14, 2012 at 5:42 AM, Johan Løwig Rambech Dahl <
> [email protected] <javascript:>> wrote:
>
>> Hi
>>
>> I have looked everywhere, but I cannot find how to choose the "Recent 
>> conversations". The dropdown beside the chat contact only gives the 
>> opportunity to decide how the contact will show up in the list.
>>
>> I cannot see if one can find the recent conversation from the persons 
>> profile from the contact list either. The settings for chat does only give 
>> the opportunity to save conversations as emails or not.
>>
>> So the only way to get the old conversation when using gmail chat in a 
>> browser (Firefox and Chrome at least) is to find the chat from the chat 
>> label, it seams.
>>
>> Or am I missing something? Please help me out on this ;-)=
>>
>> Best regards, Johan
>>
>>
>> On Saturday, 23 June 2012 19:58:05 UTC+2, vukko wrote:
>>
>>> Hi Kiran
>>>
>>> On the 'More' dropdown of your chat contact there is a 'Recent 
>>> conversations' link.
>>> If you are using the standalone Gtalk application, right-click the 
>>> contact and select 'View past chats'.
>>> You can also use the search bar in Gmail, Eg. 'in:chats from:bob'.
>>>
>>>
>>> On Fri, Jun 22, 2012 at 1:18 PM, Kiran Nayak <[email protected]> wrote:
>>>
>>>> Me n friend, both of us use gtalk. I have enabled the service to save 
>>>> my chats in gmail.
>>>> But how to view it?
>>>>
>>>> I googled for it, it told me to click on "Chat", I also saw the images.
>>>> N that option isn't even available now.
>>>> So I changed to the standard view (I use basic html, I am more 
>>>> comfortable with that). N it isn't available even there!
>>>>
>>>> How do i view it?
>>>> its really important for me.
>>>>
>>>>
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>>>>
>>>
>>>
>>>
>>> -- 
>>> Marko
>>>  
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