Baires, I agree that gold would go up. However, last week showed us how gold stocks react in a sharply falling market. They get clobbered along with everything else.

Investors were selling indiscriminately last week. I'm holding stocks that are trading below the cash value in their flipping bank account. What's that about? Sadly, they'll probably drop tomorrow even more when the Canadian Market opens because gold is down again.

Fundementals have gone out the window right now. Investors just want to save a little of what's left when the market starts to collapse and they'll sell anything. They aren't sitting back in a nice leather chair thinking, "hmmm if I cash in that hedge fund now, it's going to be forced to liquidate at fire sale prices and I'll get a crappy return". ... no they're thinking "That hedge fund is about to go tits up... I better get out with what little is left"... and so the hedge fund is forced to sell off whatever they can to raise some cash to pay the investors out. Keep in mind what JP was talking about with leverage.

It's hard to know exactly what gold will do. I still believe it's heading way up but hard to say. Here we have a day when the dollar is down against most currencies, oil is up, inflationary monetary policy is clearly bubbling all over the world but GOLD IS DOWN!

WTF???