Nothing has changed. No matter what paper does, smart money is trading fiat for gold. Gold supplies are almost gone. Silver supplies have peaked and started rolling over. There is no math or historical reference that says the dollar will retain value. Most people are incredibly stupid. We are so lucky that there are people with no understanding of finance both in the public and working in finance. Scoop up as much gold as you can. When the herd turns and chases what little gold is left to save themselves, there will be no way to prop up paper money.
Just keep taking the physical. When gold gets above 2500, you can start to think about trading it. There is just no trade here. This is straight up two fisted buying for as long as it lasts.
I agree with both of you...inflation has been largely in check, and the world has gone-on, and gold has lagged and been in bear territory; Yet, these are historic times. We've never had a Fed that did this much "quantitative easing", even pushing-on when the Market expected them to pull-back. The question to ask is: 'what are the effects of all this Fed-money flow"? IMO, it's another huge bubble. Look at the 10-year. That was one of the main reasons the Fed didn't cut-back their asset purchases this last go-round.(Yeah,, they said it was mostly all-about jobs, but Bernanke did reference the late big-rise. The 10-year Treasury made its fastest large historical gain ever, when it bolted from 1.5% to almost 3%, just on "talk" of a Fed pull-back. In fact, it's still trading at 2.75% even with the Fed's most recent announcement. Why is this important? B/c interest-rates totally effect American consumer's purchasing power. In fact, we've grown accustomed to sub-4% rates; But we must be reminded that "this isn't the norm". If the 10-year is acting like this here, before tapering is is full swing, imagine how it could rise when tapering commences in earnest. Before you know it, housing and autos sales are in big decline, not big ascent. No inflation now, but a 5% 10-year in early 2014, could be a wicked spring-board to much higher interest rates to come.
When gold was last at $1,800 you didn't have the same macro-climate that you have now, with a Fed engaged in trillions of assets purchases, nor did you have the long-term structural debt our Government has, now topping $16-trillion. When we had high interest rates before, we "weren't floating such a big note". Now that we are, high interest rates have a magnified effect, and too high too fast, much less sustained, could have wrecking-ball effects. No big-big inflation now, but with run-away interest rates, the magnanimity of the Fed-bubble will become apparent, from everything to the Dow to buying...