Gold's decline is wrong.
Europe can't get out of its jam without two pro-gold events occurring: a failure of the state entirely, with default on the bonds, or a papering over of the problem while France and Germany try to come up with a currency alternative that ends the madness.
Both scenarios are totally pro gold. Off the charts pro-gold. But as has been the case for gold's amazing run, nobody, with the possible exception of Ron Paul, seems to want to use today's decline as a buying opportunity.
Why is that?
It's simple. First, gold has run so much that no one can trust it. Every dip is supposed to be the "long-awaited swoon."
Second, people don't seem to realize that just because it doesn't go higher every day of the crisis, that doesn't mean gold won't go higher over time. The crisis ebbs and flows -- but the flows are more prominent than the ebbs, so you want to be there on the ebbs every time.
I would feel differently if we were finding a lot of gold. We sure aren't. Go listen to the conference calls.
I would also feel differently if there was a country or a country's people that are net sellers of gold, but it's just the opposite worldwide.
So take advantage of gold if you don't already own some.
It may not go up immediately, but talk about a hedge against Europe -- it has them all beat.