Ron Mahabir08

Gold as a Truly Last Resort

Some very relevant points, and overall agree with your analysis. Timing, however, is the key here. Your scenario could take a while as the whole "old system" is bent on survival. That said, can't be too wrong going long physical gold for the long-term (5 years+).

Five Sophisticated Gold and Silver Investment Strategies for 2009

Ultimately, investors are seeking a "safe haven" and gold is certainly more appealing than fiat currencies headed towards 0% interest rates. More importantly, the paper market is approximately 2.5x the physical one, which will make gold rocket once the masses realize that holding ETFs or other gold-related paper securities is like a 2006 vintage of securitized mortgages.