11 Reasons Gold Still Shines

“I can think of 11 good reasons why it is still early to buy gold,”

1 - Valuation -- the most important, yet overlooked commodity on the board

2 - U.S. dollar still over-owned, diversification and/or new reserve currency still needed

3 - Worldwide gold reserves are stagnant and mine production is shrinking (peak gold)

4 - China’s gold and futures exchanges just now launching access to gold investments for retail investors

5 - No sign of an end to cheap money policies despite a sizeable inflationary threat

6 - Coming bear market in shares to provide extra fresh safe haven “liquidity”

7 - Seasonal trends are favorable until about May-June

8 - 2008 U.S. election uncertainty

9 - Geopolitical uncertainty / wild card

10 - U.S. budget deficit to widen on recession and current stimulus plan

11 - Confidence in Fed impaired as Bernanke seen to panic on latest rate cuts
We’ll consider today’s federal budget proposal and Jim Rogers’ comments on the dollar above as reason Nos. 12 and 13.