I started reading Zero Hedge about the same time I ran into FOFOA. For a "long" time (a little over a year), I used to howl like a banshee (or would that be bleat like a sheep?) that gold was a BARGAIN at under $1500. I wrote this over and over... I believe I started writing that when gold was under $900. I still wrote that as gold passed $1040 ("The India Put" -- that was India bought that 100 tonnes). I wrote that as gold sailed into the $1200s and higher.
Gold just reached to an all time high of $1550 or so recently. But, it has fallen back to around $1500, most of that $50 decline in two days of trading.
I have asked myself: Is gold still a bargain at $1500?
I answer yes. Although a lot of "easy money" has been made (although you would have to SELL that gold to get the "easy money"), I believe gold has LOTS of upside left. NO WAY I am selling mine.
At this stage I am only going to be an incremental buyer: I will buy less oz than over the past three years or so, but I will buy as money comes in. I had already attained my goal at end-2010 of having 10% of my net liquid wealth in PMs (75% - 80% of that in gold).
Buying gold has ALWAYS felt very expensive to me... (that is a topic I will address later, the idea is still brewing).
Gold provides the single best diversification to anyone who has no or little gold.
I do not if gold is on the verge of a big price fall or not. FOFOA's magnificent article "The Shoeshine Boy" explains what will likely happen if gold's paper price craters: the physical will disappear from the market. Try and find gold at COMEX's paper price of $400... You will not be able to, not even if you would pay $600 or even $1000.
NONE of our problems have been solved. Money supply is going up all around the world. Our leaders refuse to take the hard steps necessary to fix the financial system(s).
While maybe not a "bargain" (or as much of a bargain as it used to be) at $1500, it is still a "Buy". I will be there with many of you, buying as the price of physical gold reaches ever higher.