Actually, physical gold has been a reasonably good hedge against a poor market, even with all of the deleraging. And it hasn't slid much at all compared with a lot of the major currencies, including the Canadian Dollar in which I trade.

Compare a chart of gold against almost anything else (excluding the US dollar) over the last year. Personally, I would be happier right now if I had moved entirely into physical at the beginning of last year.

Gold equities haven't performed that well. But this will change. The major gold companies are still generating good profits at this price, and that fact can't escape unnoticed forever.

MR