MarketWatch Article Counsels Caution, But...

...still has an embedded video featuring Frank Holmes, CEO of U.S. Global Investors, saying that gold could go to US$2,300/oz. The article says that the biggest risk to the gold bull is the Federal Reserve unwinding the excess-reserve swelling on its balance sheet before those reserves are lent on, causing a huge increase in the money supply. It's a good discussion of the future-inflation argument, and the deficits-sinking-the-greenback argument. The usual counterexample, Japan, is brought in.

Interestingly, there are two titles as of the time of this post. The most-read link, the URL and the title bar have "Gold fears hinge on unfettered Fed, U.S. spending" The title to the article itself, evidently a re-title, is "Deficits and loose money should lead to higher gold." It's by Laura Mandaro.

Also worth looking at is the sidebar-linked special report, "The New Gold Bugs." One piece in the series, "Are new hedge fund gold bugs getting in at the top?," points out that sentiment is worryingly bullish right now, especially considering that bullion's gone up more than four times since 2001. If I'm right about the gold bubble, the gold market will either shrug those concerns off or else dip down slightly and resume the upward climb.

Another article in the series profiles mainstream insitutional investors, such as Paul Tudor Jones and John Paulson, plowing into gold: "New gold bugs making gold investments mainstream."