[MRM]

No. The factors that sent gold on its run up are ending. China is slowing big time. The dollar is strengthening. Interest rates are rising. US unemployment remains stubbornly high, which is a deflationary factor. Quantitative Easing will end this year. Most of the underlying justifications for gold rising are coming to an end. Add to that the fact that a significant amount of gold's rise comes from speculation and the assumption that it will always go higher. The second gold looks like its dropping, all the speculators or even the imstitutional investors who need to cover their positions, sell in a panic.

Over time gold always returns to a fairly predictable cost that can be calculated based on the value of the dollar, inflation, and a few other factors. Remember, this is long run analysis, and things can stay in the short run for a long time. But the historic average for gold, even in this environment, is about $800 an ounce.

There's a lot more downside to gold than upside. Buying now is like trying to sail into the wind.