Via Richard Russell: Gold — We’re told that “the gold bubble” has popped. “Quick, sell your gold jewelry as fast as you can, because the bubble has burst, and this is the top for gold.” But a lot of smart folks are taking an opposite stand. This from this weekend’s business section of the New York Times — “It’s not like a bunch of weirdo gold guys saying the world is going to come to an end. Now you have people who have a lot of credibility, a history of making sound investment decisions, saying this is the right place to be. That’s very reinforcing and has legitimized where gold is today.” John Hathaway, manager of the $11.1 billion Tocqueville Gold Fund.

By Jim Sinclair in CommodityOnline.com

The gold bears are out today as the aired 2010 predictions are being issued by talking heads.

Some pro-gold stars like Mark Faber and Jim Rogers are being interviewed every day and are predicting a dollar rally. That is scary to those that have followed them and is making them emotional.

This is the end of the year and there isn’t a market for much right now. There is profit taking on gold spreads as taxes on commodity trades as regular income are anticipated to rise meaningfully in the near future.

The ease in the US dollar is being considered as yearend as most predictors are friendly to the dollar short term.

The London markets are closed today

In the grand scheme of things this period is quintessence in its meaningless nature. Stay the course.

Following are the gold-predictions from Jim Rogers, Marc Faber, and Nouriel Roubini

Marc Faber
In the 1980s the US Dollar was a very strong paper currency compared to the Mexican Peso. Today, there is no paper currency that is as strong relative to the US Dollar as the US Dollar was relative to the Peso in the 1980s! The only “currencies” that have a chance of becoming as strong against the US Dollar as the US Dollar was against the Peso between 1979 and 1988 are precious metals such as gold, silver, platinum, and palladium.

According to Dr Faber he is buying lots of gold exploration stocks and gold producers because their prices were ridiculously cheap. Dr. Faber, who wrote the best-selling book Tomorrow’s Gold and has long been a holder and proponent of physical gold as a hedge against inflation says gold stocks are the best bet against global financial meltdown.

Jim Rogers

….read Rogers and Roubini HERE.