Whenever bullion swoons $20 or more, as it did yesterday for the umpteenth time, we need to remind ourselves that it's only a game, one who's sole purpose is to keep gold bulls from making easy money on the most one-sided bet since Secratariat practically lapped the field in the '73 Derby. Who on earth could possibly think gold is a sale here? (other than Kudlow, of course. Some may recall that, years ago, he went on record in the Wall Street Journal with an op-ed piece purporting to explain why $300 was the 'correct' equilibrium price for bullion.) Anyone eager to unload gold at these levels -- or even more stupidly, to short it -- must necessarily believe that currencies are about to strengthen. Besides Kudlow, how many such fools could there be? In reality, any investor or sovereign government with significant exposure to fiat money is poised to hit the panic button. China, India, Russia, the Caliphate ' indeed, the entire world ' appear to be diving into hard assets with abandon, even if the assets are mere corn on the stalk. The Alchemists And yet, when Comex bullion contracts sell off hard for an hour or two, doubt metastasizes even among the hard-money faithful. Gurus who have been wildly bullish on metals since the 1980s start warning of a nasty correction, one that supposedly is long overdue. Conspiracy buffs curse the satanic lords of the House of Goldman. And the Alchemists lick their chops in anticipation of a Golden Age of Hoarding. But we see no evidence that gold is about to accommodate laggards with a prolonged selloff. Comex futures have been routinely hitting their rally targets, and we have every confidence that they will continue to do so, racking up yet one more conquest today or
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