Safe Haven

Earlier this year we bought a gold stock (gld) and made a nice profit after holding it for about two months. We sold it almost at its high-a level that it has not seen since.

Historically gold has of course been a safe haven and most financial advisors that I've heard lately recommend buying some gold as a hedge against inflation.

Obviously we are now in uncharted waters and it seems to me that now is a pretty good time to buy gold again, not as a hedge against inflation but as a hedge against deflation of everything else.

Last night CNBC predicted a default in paper gold and a severe decoupling of paper from the real thing. Yikes...better get a vault.