Bae: Let's not oversimplify inflation as the only driver for gold. USD, Political Unrest, Financial meltdowns readily come to mind. My reason for staying long gold and AUY is that I firmly believe the FED is going to have to cut FED funds by 50 basis points by June. No way around it. Subprime meltdown is already showing signs of not being contained to just the subprime lending co's. MER and other brokers as wells as many major banks (think HSBC, CitiBank) have major exposure to the subprime borrower. Fed lowers rates, dollar breaks 80 level and gold is going higher, much higher. Let one major financial institution promulgate they're having problems and this blip down in the DOW this past week is gonna look like a dot on a one year chart. Gold will eventually revert back to its historical role as a safehaven when the fit hits the shan.