Grrrr- innocense lost, Dow tumbles and AU ??

Just a quick note today:

The big news today is that all markets in the US dropped at one point the DOW was down 184 to 8284.89.. Gold meanwhile began correcting early on, but rallied as the DOW fell. Standing at 925.90 @ 3.17 CST. Silver however, made its correct along with Gold early, but did not follow going up nearly as much as it followed going down yielding a loss for the of .22 @ $14.00.

So what does this mean?

Well... it does mean one thing. Those people who do play the market still consider GOLD a tool to be used as it always has been, a hedge against inflation. Is gold money? No, but it is a tool to be used when investors feel they have little other options. Silver on the other hand should be considered or actually .. it just should not be considered. The only ones buying silver are investors that have not figured out that silver is not Gold.

Sadly... when I look at these numbers.. I do not see gold going up in price... instead what I see is the US dollar droping in value. To see it clearly simply look at other currencies and how they have faired over the same time frame. The percent change in US dollar verus all others shows that the world moved away from US dollars and went.... well went to anything else including GOLD. In fact I would say that if I had $1000 in the bank this morning (which I do) then this afternoon that $1000 has lost value to the same extent that GOLD has risen. So lets say my $1000 is now $997.... in one day.... per thousand... and everyone who has US dollars lost that... around the world. So if you had say... 1 million US dollars what would YOU do??

Gold is not money.. but it is a tool.

PS: Platinum has done noting but dropped. For some reason Plat is only being seen as a commodity like copper or oil. Its value is what the market demands via its use (mostly in automobiles). Since the auto industry is on extremely hard times... the need for plat is down thus the value of plat is down.. ie it is logically following demand. So like silver, plat has not been seen as a store of wealth. Perhaps my gold fever should consider golds big brother.

PPS: I read on Kitco:
Gold should top out at $1200 and retreat to $1100
Silver should top out at $20 and retreat to $11

Given those... I think there is too little room to play with Gold, and silver is certainly off my list until it returns to norms of $11 or even $9. World supply of silver is high right now.