There is no commodity or asset class that only goes up and up. There are always corrections and pull backs. Today proved the point. Gold prices dipped more than 2.5% after China announced a 0.25% interest rake hike pushing the dollar index up…the biggest daily uptick for the reserve currency in several weeks.

U.S. Treasury Secretary Tim Geithner said yesterday the U.S. would not devalue the dollar and would work to “preserve confidence” in it. Both the unexpected news from China’s central bank and Geithner’s comments gave the flagging dollar support and pushed the buck higher against most major currencies. That in turn weighed on commodities, which have been supported most recently by the sharp dollar weakness.

Even so, some forecasters see this dollar strength as short lived.

Alan Bush, senior financial analyst at Archer Financial Services, said “We expect the greenback to resume its downtrend, at least until the Federal Reserve formally announces the widely anticipated second quantitative easing program.”

“Anytime anyone talks about raising rates, you’ll see gold and silver tumble.” said Mike Daly, gold and silver specialist at PFGBest in Chicago. Comex gold prices ended sharply lower Wednesday. December Comex gold last traded down $36.00 an ounce at $1,336.10. Spot gold was last quoted down $34.00 at $1,336.00.

Gold will continue to go up…and down. But for the long term (3-10 years), all indicators say gold is on an upward march. How much higher will gold go? Time will tell.

By Nicholas Larkin - Sep 24, 2010

Gold futures rose to a record $1,300 an ounce in New York as investors sought a protection of wealth and an alternative to a weakening dollar. Bullion traded at an all-time in London and silver reached the highest price since 1980…

 …Gold, up 18 percent this year in London, is heading for its 10th consecutive annual gain, the longest winning streak since at least 1920. Bullion has outperformed global equities, Treasuries and most industrial metals, prompting record investments in gold-backed exchange-traded products. The metal rallied as central banks and governments maintained low borrowing costs and spent trillions of dollars to stimulate their economies.

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Did you see it coming? The housing bubble before it popped?  The collapse of the private debt bubble? The fall of the stock market bubble? The collapse of many banks...and the widespread pain all of this was going to inflict on the rest of our economy? Like most Americans, you probably didn’t see this economic tsunami in advance. But authors David Wiedemer, Robert Wiedemer, and Cindy Spitzer actually predicted all of these events in 2006!

What are they foretelling now? In Aftershock, their latest book, the authors offer the definitive look at what is still to come --- and what investors must do to protect themselves.

This is not merely a down market cycle, the authors explain, nor is it a typical recession. It is a multi-bubble economy being hit by a “Bubblequake” and the coming Aftershock will be far more dangerous. Aftershock details the next bubbles about to burst, including the Dollar Bubble and the Government Debt Bubble.

While there is still time, what do you have to do to protect your assets and position yourself to survive and thrive in this dangerous, yet potentially profitable new environment? How can you cash in on the chaos? The authors explain.

Gold Is a Great Bubblequake and Aftershock Investment
Because It Takes Advantage of a Falling Dollar,
a Falling Stock Market, and a Falling World economy.

…Traditionally, the warning to “Buy Gold!” has been the longtime mantra of the chronically pessimistic. More recently, however, an entirely new, much more optimistic crowd is starting to buy gold, too. And for very good reasons.

As other asset values decline, people will want to put their money somewhere. They will want to buy something…preferably something of rising value that has a long tradition of acceptance and demand during difficult times. That is gold. As demand continues to rise for gold, and then rapidly rises when the other bubbles pop, the price of gold will shoot up. The rising gold bubble is your very best bet for profits during the Bubblequake and Aftershock.

Gold is an excellent investment for these crazy times because it takes advantage of both the falling stock market and the falling dollar, as well as the overall falling world economy. Gold is an investment opportunity that is custom made for the crazy times ahead.              

- excerpt from Aftershock (pages 137-138)

Have you acquired a sufficient amount of gold to survive the Aftershock? That’s the question you should be asking yourself today!