Thanks NL. I remember seeing PVE on BNN speaking to this, found the link via his website:

http://watch.bnn.ca/trading-day/augu...

Summary: fair value for gold according to him is $760 (as of August) based on his own inflation calculations. With the fannie/freddie bailout now in the bag, a line up of others at the begging bowl, the foreign central banks at their limit for USD..it could (should) be an interesting to see how any inflation calculation maintains a steady trajectory. As Jim S. says, when foreigners begin to balk at more US debt or treasury purchases, the funding must come from within.