FreddieBoy

Goldman: Gold to Rise Above $1,400 an Ounce by 2011

Gold is currently way ahead of inflation. CPI index was .154 in 1967 when gold was $100. Therefore gold should be $650 ($100 x 1/.154) to match inflation. There is alot of people jumping on the gold band wagon. Looks like NASDAQ in 2000 and housing in 2006. Be careful.

Paulson: Gold's Bull Run Is Just Beginning

It bothers me that everyone is bullish on Gold. I sold my position at $1060 ( cost $450)
Gold in 1967 $ should be around $700
Looks real crowed here.
I have sold naked puts at $900
We'll see what happens
Deflation still around. 10% unemployed and 10% of all houses empty. Banks still have a lot of crap on the balance sheet. Inflation may be a problem 3 years from now but the risk of a double dip looks high

The Swissie and Gold

Harry Browne did some great work on "gold backing" of currencies in the 70's. I have held cash reserves in Swiss Francs for years ( not as a gold allocation) and have done VERY well. Don't use SF as a gold hedge but a cash hedge instead of US$