I prefer to take the position through stocks. If there's inflation, earnings inflate along with it, as do incomes and some specific assets. Gold as an inflation hedge never really struck me as logical. If you're worried about inflation, buy tips or a tips bond fund. I believe there are ETF's for those.
Misch analyses Faber's latest 'Marc Faber Sees War Against an Invented Enemy and a Big Financial Bust.' http://globaleconomicanalysis.blogspot.com/2009/11/marc-faber-sees-war-against-invented.html They agree on basically everything despite them being total opposits: deflationist VS hyperinflationist.
"Faber: Gold won't drop below $1000 per ounce again, ever" I am waiting to double up on my current physical gold deliveries at a drop to $1100, and every $100 below that. If it never drops again, I win with the gold I already hold.
gold will drop when the last long is in it... Only pro will be able to survive this fall ( kudos to those in advance ). why ? because it's just a metal.
I remember T. Boone Pickens saying that we will never see oil below 100 in our life times, when it was around 130 I think. There are always tons of very smart people having very strong arguments why asset prices will not drop. The last wave of the bubble is parabolic move up, why so many people forget this simple fact is amazing.
Red duke, I strongly agree with you, my point was that if you missed the train don't jump in the track trying to catch it
Comparison of a demand driven commodity such as oil with gold, which is in the process of becoming a quasi currency (in part due to grave concerns of the continued role of the dollar as the reserve currency) is suspect. Unhealthy greenback means gold will stay bid.