Thanks Wombat, Thomspson also makes the point that traders shorting gold expecting a dollar rally should beware there's nothing to stop the USD and $US gold exploding higher together:
"22. What is little understood in the gold community is what actual actions were taken by the various groups of players in gold in 1979. The public bought into the final part of the rise, that is common knowledge. But within the institutional and fund trading communities, the tactics employed were either long dollar short gold or outright short gold. When gold soared "impossibly" along with the US dollar, legions of traders were literally wiped out.
While the public bought into the final top, the trading world was being wiped out, caught in a lock-limit up golden nightmare. The banksters, and a very few in the gold community (although many have hired "gold editors" to retell their stories in a more positive light) sold at the top. They made a killing while most gold investors, whether long or short, were wiped out."
