Gold Buy Signal

Today I took $6000 profit on RGLD option play. I am still short the market with UBB put. I see this 2 day rally in $indu as a bear market rally and will aggressively short it. If RGLD breaks out to new highs will also take a 10% position of gold producers RGLD AEM NM AUY etc. in my pension profit sharing plan.

"In this respect the present crisis in the West will ultimately end up discrediting mechanical monetarism -- and with it the fiat paper-money system in general -- as the U.S. paper-dollar standard, in place since Richard Nixon broke the link with gold in 1971, finally disintegrates.

The catalyst will be foreign creditors fleeing the dollar for gold. That will in turn lead to global recognition of the need for a vastly more disciplined global financial system and one where gold, the "barbarous relic" scorned by most modern central bankers, may well play a part." Chris Wood WSJ 11/24/08