Fed Is Creating Golden Opportunity

As fans of Superman comics and/or Seinfeld know, Bizarro World is a land where up is down, black is white, good is bad and so on. In other words, it's sort of like the world I found myself this week at the Denver Gold Group's San Francisco gold forum.

Whereas equity and fixed-income traders foresee only positive outcomes from the Federal Reserve's aggressive monetary policy, gold advocates see Alan Greenspan behind the wheel of an out-of-control vehicle headed for a steep turn. Where equity optimists spy salutary effects of a weaker dollar, gold bulls envision a crumbling currency leading to higher inflation, buoying the yellow metal.

That's perhaps a bit dramatic, but the salient point is that recent gains by stocks and Treasuries have done little to dissuade gold adherents from the righteousness of their path. ...