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I post this to all my friends on my ping list:

Capitalism2003 says:
"Short gold, buy silver..."

I have to take the opposite side..at least as far as gold bullion is concerned. Gold has dropped (probably do to profit taking) $30 an ounce over the past two weeks and the short your suggesting has just taken place. Buy gold tomorrow at this $349 level is my advise!
(and no, I don't own Houston Precious Metals and no, I will receive no commission or stipend whatsoever for mentioning this fine company's name)

$349 is still rather high, and the upside for silver looks much better than the upside for gold. When gold hits its resistance level again, a lot of money will divert over to silver--which is not as highly valued relative to its availability as gold is.

YMMV, OIRVMACTTA, et cetera.

Buy gold tomorrow at this $349 level is my advise!

I'm with IncPen in #7: this is like swimming with sharks. The main thing that anyone should get from this article is that this is a market where the central banks of some pretty big countries are players. However much they have sold or swapped already, no one disputes that they still have many tons left. So that's who you're playing against when you go into this market: guys with literally tons of Other People's Money. They also have entire staffs of economists... forecasters... the best computer models money can buy. An individual investor is a bug in that environment; you could get squashed like a bug at any moment. Good luck to those who want to play this; I do hope they are playing with risk capital and not their life savings.

Concur. Gold is finally in a primary bull market, and this is only the beginning.

If the story is true -- that the central banks have swapped out most of their gold to the bullion banks who have used it to keep the price down to support the Strong Dollar Policy -- then there is going one hell of a short squeeze soon. The central banks will no longer be able to play this game, and they'll have to get that gold back. The bullion banks will have to buy it back at many multiples of the current price.

Then look at collateral damage.

What will a short squeeze in gold will do to financial markets based on paper -- stocks and bonds?
What will a huge price jump in gold do to the dollar and other fiat currencies?
When the central banks defend their currencies by raising interest rates through the roof, what other collateral damage does that unleash?
What about those financial institutions who have huge amounts of money at risk in interest rate swaps (derivitives) that were once safe but now are dangerous in a world of volatile interest rates?
What kind of collateral damage do we see in the world of the FDIC and Fannie Mae and Freddy Mac?

I feel like the guy who stands on the beach and sees what looks like a cloud bank moving quickly toward him. Only too late does he realize that the cloud bank is really a tsunami.

I invested in gold around the time I was a junior in college to help pay my student loans. Although the stock, asl, went down the tubes. It is currently at $6.15. I remember buying a block of it in '95 at $1700. Now I'm just waiting to break even as this stock has been hedged.

Try myng.ob, and nem; both are gold ticker symbols. I bought 10,000 shares of myng at .05 and .06 just a year ago. So far I've trippled my profit. I'm waiting for it to get to $1.00 then I'll sell.