The present situation

The’ better-than-expected’ poor employment figures of last week were generally taken as a sign that the recovery is there, but L-shaped with a slightly rising bias. The new stimuli from government will be positive and hitting where they should. Tax breaks on new equipment and infrastructural development tastes the same as digging holes and filling them in did in the 1930’s. We have to wait and see if the economy will respond. We sincerely hope it will. But do investors even in the U.S. believe that a recovery will see a fall in the gold price? We think not!

Since gold stopped being money, it's become 75% more valuable on average...

SO GOLD is now at "fair value" reckons Bill Bonner, long-time gold bug and my former boss/partner-in-crime at The Daily Reckoning's London HQ, writes Adrian Ash of BullionVault.

No, he won't sell yet...if ever...says Bill. But gold's huge under-pricing a decade ago has clearly passed by. Value-hungry investors got their "reversion to the mean", and in the form of 400% gains, too. What one ounce of gold bought 2,000 years ago – a good suit of clothes, in Bill's oft-repeated example – it now matches, if not exceeds in price, here in late 2010.

When gold is written about as money, it means different things to different people. Money is, after all, what most people see as a means of exchange; you use money to pay for goods and services, simply that. 

More journalists than potential buyers pack the Gold Investment market right now...