I thing Gata & Thompson are right on the money:

" Stewart Thompson: Central banks will push gold up to rescue asset prices
Submitted by cpowell on Wed, 2010-07-28 02:37. Section: Daily Dispatches

10:30p ET Tuesday, July 27, 2010

Dear Friend of GATA and Gold:

In commentary posted tonight at 321Gold, newsletter writer Stewart Thompson joins those who expect central banks to revalue gold upward and devalue their own currencies. Thompson writes:

"There is a middle step between quantitative easing and money printing, and it is gold revaluation. No confiscation is needed in the current crisis to make revaluation 'work,' because so few people own gold. The major central banks are already committed to major long-term gold buy programs (the opposite of the 1990s), and these buy programs are the mechanism of gold revaluation under a sort of guise of currency reserves diversification.

"The central 'banksters' aren't stupid; they didn't get the market all wrong and accidentally sell their gold holdings into the end of the gold bear market, any more than the current buy programs are 'knee-jerk' reactions to a rising gold price.

"The buy program is about gold revaluation, not rushing to buy gold as an asset. As QE is more and more broadly deemed a failure in the fund community, the central banks will step up their gold buy programs, stepping UP the price they pay for the gold, with tremendous vigor.

"The buy programs of the central banks are not about adding gold to diversify their forex reserves; they are about devaluing paper money to raise asset prices, as blown marked-to-model OTC derivatives can then be marked to market."

Thompson's commentary is headlined "It IS 2008 Again. So What's in Play?" and you can find it at 321Gold here:

http://www.321gold.com/editorials/thomson_s/thomson_s_072710.html

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc"