He said: “The inflationary pressures that must result from all these financial bail-outs must lead to higher inflation rates, which must lead to a higher gold price. I am surprised that gold has not yet performed as a result.”

That sounds an awful lot like every other gold bug and PM analyst to me. They're all surprised that gold has not yet performed. If they would simply accept that gold is proxy for a successful reflation, that would explain why it hasn't shot up. The equities market obviously believes there's more downside pressure to come, further pressuring the gold price. I'll say again I think gold will rise along with PM stocks, but not until a final capitulation is in place.