Gold works on volatility in the fiat money market.The fiat is based on the health of the economy of which it represents. The American deficit spending is accelerating (600 billion), causing Mr. Greenspan to print more money and lower interist rates. The printing of money devalues the dollar, but it makes the US more competitive in the export market. the real trick is to control deficit spending and bring it to a zero growth level. Once this is acheived the printing presses will stop and the acceleration in the POG will stop and possibly start to decline in price.

Currently these are not the economic policies of the US government. Government spending is rising because of wars and domestic economic problems. I do think devaluation is the correct course of action but it's a fine line to walk given the turmoil it will cause in foreign markets. Foreign markets such as Japan and Europe don't want their currencies to be high because it will stagnate the home economies and hence they will start the cycle of lower interist rates and printing money. Ah and theres the rub, Gold then has universal appeal to the nations which are caught in the fiat cycle of devaluation. The problem then is no one can print gold you have to dig a very strategically located hole and extract the ever dwindling supply. The flight to security continues until fiats devaluation decelerates. IMHO.

Go BGO the world wants your goods in their vaults.