Gold, All That Glitters?

All that glitters?

Rushing towards gold? A lot of people are lately. Should you really take the plunge? Well if and when you do consider the following points:

1. Gold has already had a spectacular two-year run (even if not exactly as powerful or as high as in the late 70's and early 80's)
2. I know you tire of hearing it—but it bears repeating...gold is a store of value, while stocks are return on value (no chicken little the sky didn't fall and flatten your poor, poultry body after all)
3. Yes, Soros and other Cosmic Players are in it, but will they be tomorrow (stay tuned for the next release of Soros' current holdings—it will be an eye opener)
4. This Fed is not the Nixon Fed: No longer can the US dictate global monetary policy as effectively as it once did—even as recently as 10 years ago (there are new considerably powerful countervailing financial forces such as China, India, and Germany...they will push back on the Fed's dollar Flooding---global inflation will be thwarted)
5. It is true that many of Asia's middle classes have taken a new found interest in gold—but that sentiment could change as soon as their perceptions of the stability and long term trajectory of their and the world's economy change—and that might happen faster than anyone might think possible now—even as soon as the first quarter of 2011
6. And finally it's worth pondering that over long stretches of time, gold never beats a traditionally well balanced stock portfolio

Gold was the poster boy for this century's first truly global financial crisis. As it was for the last century's crises. And I'm pretty sure it will come back again and again with its soothing glitter promising safety and security in an uncertain, fast moving world. But for now:: Buyer Beware!