I disagree. I think the soveriegn funds and central banks of China, Russia and Gulf States are and will be buying up gold. May be even holding it back to some extent while they try to get their reserves higher.

Everyone knows the dollar is done at some point. Maybe not this year but at some point you dump a few more trillion dollars into the market while watching your deficit go ballistic and your GDP drop and you've got the makings of a currency catastrophe. Even if it's just a chance, you have to have some kind of insurance against it and gold and silver are the only real answer for that now.

You know the reasons for the dollar gaining strength right now are not based on fundementals. So what happens when the markets do settle down and investors get tired of making 1% on their treasuries. Where are they going to put their money? US bank stocks? How about General Motors? GE?

The blue chips have lost the main thing they have going for them and that is that they're the anchors of your portfolio. No longer is that the case. Banks will stabalize but their dividends will be taken out, growth will still be limited and they won't ever be seen as the rock solid anchors that they once were.

China isn't stupid. They don't think short term like we do. They think beyond their own existance. Gold is the only investment that has continually gone up from one generation to the next. While no currency not based on gold has ever lasted more than a generation, gold has held value since the dawn of civilization.