Gold Bulls and Bears

That's the Bearish Case??

Though gold performs well as a defensive asset in times of global economic strife, its long-term record is spotty. Over $1,040 an ounce is only a record if you leave inflation out of the picture. Factor that in and gold prices haven't gotten near prices from the early 1980s.

--Melinda Peer, "Gold: High Risks And High Prices"; Forbes (10/7/09)

Let's see . . .

Today's ongoing economic crisis is supposedly the worst since The Great Depression.

At $1,040 per ounce, gold is making nominal highs, but is nowhere near it's all-time, inflation-adjusted high -- reached during the now-eclipsed, early 1980's recession.

Isn't this actually the bullish case for gold??

Factor in that gold is a smaller, thinner market than oil; and that commodity speculators now have mega-capital at their disposal (how else do you explain $160 a barrel for oil more than a year ago?) . . . and it sure seems like conditions are favorable for an epic run.