iShares COMEX Gold Trust (ETF) (IAU)

Hit a slight high as the dollar has shown to be weaker then expected... Will go down steady for a couple of months... then expect small rallies back up

Devaluation of currency

Money Supply Growth is in double digits as Fed inflates the currency to prevent collapse and pay off unsustainable national debt in cheaper dollars. Shadow Government Statistics data shows real inflation at 12-13%. Gold will continue to rise in this environment.

It's shinny and it's a great hedge of inflation. Every portfolio should have a little gold in it 10-15%.

I BOUGHT " IAU "A FEW YEARS AGO AT $65.00 BECAUSE OF AN ARTICLE I READ IN " MONEY MAGAZINE ".
EVERY TIME IT GOES UP ABOVE $90.00, I TAKE OFF 25% PROFIT. I WAIT AND BUY MORE.
I SPOKE TO A FREIND WHO IS "NOT" MY FINANCIAL ADVISOR, HE SAYS HE WONT TOUCH ANY GOLD STOCKS. TOO BAD FOR HIS CLIENTS.

As an inflation hedge, Gold will outperform the S&P as the massive global "quantitative easing" programs result (eventually) in excess money in the system, causing at least some degree of serious inflation.

I agree with Motley Fool....dreaming of a gold Christmas!

I've put my money where my mouth is here. Recommending a number of Gold plays at this time. I see both fundamental and technical reasons for Gold to be very strong in the short term. I expect the 2008 high in the spot price of Gold to be broken on the upside inside of two months.

Generally bearish on commodities. I expect the US Gov't won't be able to increase the money supply adequately to account for the tremendous loss of credit-based purchasing power. A reduction in the real money supply (including credit) will reduce economic demand and drive prices down. Commodities should correlate more with the dropping prices than companies of the S&P who have more to offer than just a particular asset. This should equal points in CAPS.

inflation hedge.

Government printing money as fast as they can. Everyone is sitting on their cash. When things start to stabilize, all that cash will be back in the system, foreign US bond holders will begin to sell, and the dollar will go bust. Until the US government stops trying to manipulate the economy through deficit spending and low interest rates, I expect the dollar to free fall.

The US Dollar is doomed. We are looking at hyper-inflation soon.

We will likely be heading toward inflationary times since the Government is "creating" all this money with the bailouts -- this generally leads to inflation in the mid-term....Also gold is similar to cash (or better at this point) and cash is king.

Per Schiff call on dollar collapse, gold spike.

Waiting on the precious metals explosion...

"Obama might destroy America along with Harry Reid and Barney Frank" play

We have pathetic (McCain) and dangerous (Obama) choices for our economy in this upcoming election. Gold will continue to be a safehaven as the value of our currency continues to decline. The only two ways to reverse the dollars decline would be to 1) stop the growing budget deficit and 2) reverse the trade deficit. In my opinion the only way to stop the budget deficit is through massive cuts in present and especially future government payments (social security and medicare). The only way to reverse our massive trade deficit is to START DRILLING OUR OWN OIL in large quantities. While McCain seems to be in favor of reduced spending and has recently given tepid lipservice to drilling our own oil he is likely to dissapoint on following through. If Obama is elected to work in conjunction with a democratic congress, gold will SIGNIFICANTLY outperform for the next 4 years.

IAU - iShares COMEX Gold Trust. It is fractional ownership in the gold bullion trust and the goal is to track the performance of gold bullion. Why I like this ETF: Gold is going up! (see below). Why I don't: This is essentially paper gold. It is a gold fund backed by gold assets, but the underlying shares can be diluted. For a fund with a more rigorous auditing / ownership process, CEF (Central Fund of Canada) is the best. 50% gold / 50% silver, rigorous auditing, and it is held in Canada! TMFSinchiruna is the most ardent propent of CEF and I agree 100%.

Gold and Silver - Relationship to the USD
Gold and Silver are money. Most people think they are commodoties, which is not inaccurate. To some degree they are; Gold is a reasonably useful industrial material, and silver is a highly useful industrial material. But gold and silver's value is because they have respresented wealth for so long. They are money, and they have value because they are non-dilutive.

Why is Gold and Silver going up? The question is incomplete. The complete question is why is gold and silver going up relative to the US Dollar. Remember, gold and silver are money. And like any form of money it must be valued relative to other currencies. Gold and Silver are going to continue their rise (in terms of USD) because of the extremely inflationary actions of the FED and the current government (and most likely the next government as well). It is a very sad and very unfortunate fact that the USD is being debased and devalued by the current government's fiscal policy. The US Dollar Index is on a very steady decline. There is no reason for it to rise in the current environment. The FED is printing money and trying to inflate the US out of its current economic dilemma. In order to make any kind of dent in inflation The FED has to take a much tougher stance. ... Their most recent "tough talk" on inflation... "We may not cut interest rates next meeting, and it might stay at 2% for the next serveral sessions"... Wow, that is the FED being "hawkish" on inflation. Meanwhile liquidity is being pumped into the system and the dollar is being devalued.

The recent gold and silver correction has provided a good buy-in opportunity. It is already on it's way out of the correction, having made up >50% of its retracement already. It is not too late yet. Once gold goes back over $1000 again, there is nothing on the horizon to hold it back. The FED has made it clear that dealing with inflation takes second seat to proping up the financial system. Unless something drastic (such as a major rise in interest rates) occurs, gold and silver will keep rising.

Getting slightly burned on this. Waiting to see when gold will continue its steady uptrend. Interest rates and the dollar are not rising any time soon. Gold and oil are not in line with their historical ratio. Gold also is not as high as it was in the 1980s in inflation adjusted dollars. Yet the dollar is weaker now than it was then.