In anticipation of a decision concerning what direction the Fed is going to take, gold is holding around the $1300 mark. It is thought that the Fed may slow its bond purchases by 10 million but in reality this is a non issue. As we continue to state, the Fed cannot stop printing money without critically devastating the economy. This in our opinion is not something they are willing to chance as of yet.
Physical gold remains what it has always been and that is insurance. It will never be worth nothing unlike many paper assets including the dollar. Prices may very well drop below $1300 but this is a temporary situation. Using honest math, you cannot destroy the purchasing power of the dollar and buy more gold with it.