I have to say again that the fundamentals behind this trend for gold are very, very strong. It's going to continue upwards. And although we're moving towards a Mania Phase, it's nothing near a mania today.
Consider the alternatives – they're quite unattractive. Another old market rule, since I'm quoting old market rules, is: Don't fight the Fed. And never since the Fed was created has there been a more clear signal from the Fed. People have made fun of Bernanke for saying he would drop hundred-dollar bills from helicopters, but that is in essence what he's doing – but with a lot more hundred-dollar bills than you could fit in a helicopter, or even a squadron of helicopters.
You don't want to fight the Fed: buy gold.
To use poker jargon, Bernanke has made an all-in bet that's going to be inflationary. So I'm inclined to make an all-in bet myself, on gold and gold stocks.
Hundreds of billions in new liquidity at the stroke of a pen – of course it will impact the stock market, and you don't want to fight the Fed.
~ Doug Casey, "Doug Casey on Gold’s New High, the Fed, and the Greater Depression,"