I was reading where portfolio manager John Paulson had a huge position in Gold (NYSE:GLD) and it helped turn his portfolio around in 2010. It is clear that pro traders will be utilizing Gold as the flight to quality tool for portoflio's in 2011. You can bet Paulson is not the only one who will use the metal ETF's as a portfolio tool, and this will bring volatility for all metals in 2011. My view of Gold is that it is way to expensive and is nothing more than a specualtive bubble waiting to shake out weak holders.Gold has its own rules, which explain its price performance and form the foundation of what we call "the gold mindset." This is completely different from the debt-based mindset that has prevailed since 1971, when President Nixon removed the U.S. dollar - the world's reserve currency - from its international peg with gold. Eliminating the gold standard has resulted in anywhere from $14 trillion to $200 trillion of debt for the U.S., which now relies on a phenomenon called "Quantitative Easing" (QE) for economic survival. QE, or money printing, has triggered global currency devaluations and protectionism worries.
Trading Gold is not the place to speculate for investors who read these articles, leave that to Billion Dollar Hedge Funds.
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