POG

When big Ben announced the unlikelihood of QE3, the gold bears came out in force and DJ Index also slipped. But a week or so later, he uttered that QE3 may be necessary as the economy is still down. POG went up like a rocket but didn't fully recover. And he has repeated his statement and POG has fallen again.

Of course, logic has only limited role in investment... in the SHORT term. Goldman Sachs agrees with me! The USA has to print more money as a way of keeping the USD competitive and stimulate its economy, and there is only that much gold being produced. Central banks around the world are looking for alternatives to the USD to hold up the value of their currencies. No, they cannot use gold only as there is too little around but they can buy whatever they can when the POG falls. Turkey is going to force its producers to sell to its central bank. Governments can be such bastards! And never learn from history.

I am still very comfortable with investing in gold and oil. Gas can be a problem due to the fact that the USA will be exporting its shale gas and China holds the world's biggest unexplored reserve. While Aussie shale gas producers are being marked up at the moment, you have to guess when is the best time to dump and run.