Bye Bye Gold Nonsense

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I am still long on gold, but it's partially a hedge too.

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Gold is a good investment unless you get a real deflationary depression. Right now, it is a good investment. I don't own any now, but I sold in order to go short speculative. Eventually it may crash if we start to see worldwide deflation.

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Gold price lost $100 in one session yesterday

Gold price has dropped more than $100 Friday facing the U.S. dollar rally and rumors of liquidation of positions by large hedge funds.
Silver, which attracted even more speculation over the past year, dropped by 18%, its biggest drop since 1987.

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Well here's the critical piece.

"The CME Group, which runs the the New York Mercantile Exchange, on Friday raised the margin on Comex gold futures by 21.48 percent and the margin on Comex silver margins by 15.63 percent."

http://www.ibtimes.com/articles/219092/20110923/gold-cme-comex-margin-silver.htm

Remember, earlier this year silver crashed when Comex raised margin requirements as well. At this point, anyone who says the commodities boom isn't being driven partly by speculation is insane.