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Response to Bloomberg's 'Gold May Pay Only in Case of Maximum Despair'

Thinking long term, the comment makes sense, you need to have enough money to buy and stand huge market swings and speculation like we've seen in previous months, if you have USD 1.000.000 you would be able to buy 1.250 Ounces of Gold, ( not much though) and be able to wait for you investment to lose half its value in USD over a 6 months period and then wait 2 years to see a return, do you see what she's talking about?. I bet Michael bought Gold at USD 850 and he's still hoping it will reach USD 2.000 soon, well reset your calculator because the wait is going to be 2 or 3 years. Inflation wise Gold certainly is a good hedge but not exactly against Inflation as such (the number), what you hedge is the second round effect of inflation like a rise in commodity prices and deterioration of currency prices, as well as the loss of value of the so called paper currency. If you buy paper Gold on Margin, chances are you need to wait until December and buy it at USD 600, then you'll be acting like as an investor rather than a day trader. U.S. MInt? Well the manipulation theory is not on the metal itself only (which does not matter), it is the psychological effect of media manipulation where everyone has been caught in. Don't invest after reading Jim Cramer, Larry Kudlow or Fox news otherwise you'll be broke soon, invest when you feel you understand the underlying effect of financials in the real money sentiment leaving room to be a contrarian 40% of the time. Sell, Sell, Sell now and buy back in Dec 08 / Jan 09 at USD 560/600. Does not it make sense? it will eventually trust me.