Falling Knives

I'm not going to comment on what's happening to the paper price of gold.  What's the point?  It will go down until it doesn't.  I see no point in trying to speculate on when that will be.

But, related to gold, I watched a webinar today that featured Jim Cramer and Doug Casey (certainly not the typical line-up).  One of the other people involved was Eric Sprott, who noted the following (after both Cramer and Casey suggested that people should have 20% of their portfolios in the precious metal): gold and related stocks represent only 1% of total global financial assets.  Therefore, if everyone was striving to have merely 5% of their money in gold (forget about 20% for a moment), the price would have to go up 5 times.  The point is, at some moment in the future, people will wake up to the necessity for owning gold, and the price will rage.