Today's precious shiny play:
is not gold. One day does not a bull market make. Demand destruction is still the key factor here... commodities are in deep trouble. So, what does one do. The inflation argument is still nonsense, but if you feel you have to diversify into an inflation hedge (not a bad move regardless if you have sizable capital to work with-- don't bother if you're trading 25k or less) you want.... yes... Swiss Francs. The Franc has turned and if it breaks 1.08 support (big if, I think dollar should resume upwards run next week... but this market is irrational) the Franc is heading back to parity. That is a 10% move. You get 10% plus interest if you park in a Swiss money fund... not a bad gain. However, should the trade fail (and I believe it will), you won't get your head cut off like you will in gold. The long-term target on gold is $600... 30% down from here. The Franc has strong resistance at 1.18 (5%) up from here. You make 10% + interest if you are right, 5% loss if your wrong, that's a good trade. Gold, you make 10% up ($1000 resistance is unlikely to go down, and lose 30% (to $600) if you're wrong.) That's a lousy bet.