My extensive research into the relationship between gold prices and financial crises shows no relationship but a very strong one between gold prices and inflation. I devoted a whole issue of my newsletter two years ago to this topic.

For those of you that read in here and do not do your own research, please be careful with these types of comments, they are inaccurate. It may happen by coincidence that they relate going forward, but there is no consistent historical basis for this assertion.

The gold and metals trade is very crowded right now, nary a person out there except me and a few much more accomplished traders than I am have been looking at the short side of gold. Markets top when everyone has already bought, and in my view, everyone has already bought metals. Even Joyce Brothers is on the radio hawking gold! Gold was free falling until the PPT showed up yesterday to reverse it and a few other things.