Time to Overbalance into Gold?

Last week, I said that I expect the US Fed to monetize a large amount of the coming gigantic growth in the US federal gubmnt deficit. If they do, and if they do it in a big way, look for longer run inflationary pressures as aggregate demand increases due to both the increased deficits and the increased money supply.

One response to anticipated inflation is to overbalance one's portfolio into gold. I have two different friends who have slowly done this recently. For more, check out this reference:

Mounting inflationary concerns, driven largely by higher energy prices, have pushed gold higher despite a stronger dollar," a Sept. 19 Goldman Sachs commodities report said.