Yer! its a little jittery before it all falls over, not everyone...

Yer! its a little jittery before it all falls over, not everyone sees gold as a safe haven and some are forced to sell for balance sheet sake.

Will gold go up in a straight line? Absolutely not.

Remember, the value of all the gold ever mined currently amounts to about $5 trillion, only a fraction of world financial market values. Thus, in a cataclysmic financial event when institutional money leaves risky assets for quality, it simply wont be possible for everyone to pile into gold.

In the longer term, this means that gold will likely have some breakaway runs to higher and higher levels in US dollar terms, similar to how the oil market was behaving in 2007-2008. I think that yesterdays market reaction foretells this trend.

I would suggest keeping a close eye on the gold/dollar relationship over the next weeks and months as the Greek and US and Europe debacle plays out, and investors start looking at other sick economies like Japan. If the trend holds, it is an extraordinarily bullish sign for gold.