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I disagree with your views about gold going down. If you just use supply and demand as an example. Countries make money out of nothing (EG. fed creating trillions of dollars a year); there is an unlimited supply that will decrease the value of the currency. You can say that one dollar 20 years ago is worth more than one dollar now. Why? Inflation due to the printed money from the FED.
Now if people don't like the US dollar, they can choose to buy other currencies in the world. The next viable option is the Euro. I do not think the Euro is any good but for some reason, they are staying par with the US dollar. Now if investors don't like the global currency, they can buy GOLD (the ultimate hedge vs the dollar). Gold was $285US a year ago; now gold is $400US. Why is the price of gold going up? Because investor confidence in the us currency is low and when the dollar decreases in price, gold will increase. Right now, gold is a hedge vs the us dollar. Soon, gold will be a hedge vs the global currency.
NO, i'm not a gold bug.
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