For me personally, gold has more value when the dollar weakens. In my mind, as my concerns mount over a weak dollar, and no good alternative, only gold comes to mind. I think some day the markets will realize also that gold is a safe haven for a declining dollar. Perhaps that’s the reason gold rose with inflation: any time the dollar loses purchasing power, investors want to own gold.

So it shouldn’t matter that the loss of purchasing power is due to inflation or a rising trade deficit and budget deficit, right? A weaker dollar should lead to higher gold prices.

I am waiting for a good entry in gold. I would feel more financially secure if I had more gold and fewer dollars. I really would. Am I going nuts? Or am I being intuitive?