Brett - Interesting article. I agree with quite a lot of points although not all. Interesting points to note are:

- the price of gold doesn't seem expensive to me if you look at the price over the last 100 years adjusted for inflation.

- the gold market has worked in a predictable cycle. It was at an all time low around 2000 (at which time Gordon Brown decided to sell gold reserves) and has steadily gone up since. It had to happen after such a long time in the doldrums.

- the first 5 years of this decade presented the best buying opportunity while gold was out of fashion.

- the recent rise resulted in the price of gold featuring on the front page of the times a few days ago. Probably a good sell signal.

- I personally think gold has arrived at fair value now. You are not buying it under value if you buy now but I do not think it is overvalued either.

- Markets working the way they do, I actually expect price increases for a few years to come. Maybe two years give or take a year. However I think the price increases from here will be more down to market behaviour of following past profits/trends than anything else. The price overshot on the downside in 2000. I think it will overshoot on the upside.

- So I'm not buying but I'm not in a hurry to sell either. I bought into a fund of gold companies throughout this decade. My plan is to sell in stages over the next 18 months so that I'll get the average price over this time.