It’s a good article to be careful and well diversified. In the current environment there is are very good reasons for gold to be high and going higher: the US has debt that is going up almost exponentially; the US and most of the world are “easing” i.e. printing money like there is no tomorrow; what killed gold is the advent of Reagan and Volker-we currently have their opposites in power at POTUS and Fed Chairman positions; the price of gold will be very tough to go below $1300 as the price of extracting it has become much higher, and it has become much much more difficult to find more economical reserves, even at these prices - gold miner stocks would have been flighing higher, and banks would have been throwing a lot of money to finance them were this not the case.
Would the prognosis for gold be different if we have reduced deficits and growth? Absolutely. In fact, who knows what the prognosis for gold been if Romney had been elected. But another 4 years of Obama and the kind of dependent electorate that we currently have...