Is the Bull Run in Gold Toast?

There's no question that gold has been on a very impressive streak, but with the recent fall under $900, is the bull run over?

Let me give you three reasons why gold is still a golden buy (cheesy phrase, I know, but very appropriate).

Reason #1: I still haven't had the gas station clerk tell me about gold being the greatest investment in the world. More importantly, there aren't any new shows out focused on investing in precious metals.

Considering the mainstream media hasn't caught on to this en masse, it looks like there could still be a whole bunch of buyers if prices start rocketing again.

Reason # 2: Runaway inflation. You see, gold is an inflation hedge. If the dollar starts losing value, gold starts gaining it.

So this begs the question, will inflation stay stubbornly high? Let's think. The government is projecting a budget deficit over $400 billion for 2008. There are also a slew of bailouts going on to try and save the world's financial system. This involves more money (aka, more debt). Finally, no presidential candidate has offered any real solutions to cutting this deficit, only new spending initiatives and tax cuts.  It looks to me like inflation will still be kicking butt and taking names for the next few years.

Reason # 3: Uncertainty in the financial markets.

What we're seeing – the complete unraveling of the financial system – is going to last for a few more years. Expect to see more bank write-offs. Expect to see more bank and brokerage failures. Expect to see more hedge fund collapses.

In the next year alone, 21 different hedge funds are projected to implode. That's just what's going on in the hedge fund world.

In the banking world, over 16 different banks and credit unions are on the verge of collapsing.

Should investor interest wane and these banks fail to get funding, then we'll have an ugly situation on hand. I've even read that Fed member Donald Kohn was looking at ways to nationalize major banks.

Imagine that… banks with the ability to access cash at any time they choose. And if they lose billions, then tax payers get hit for the difference.

Yeah, I can see just how this could add to the deficit.

So as you can see, there are three big reasons why gold should move higher in the years to come.

Let's face it, the case for gold hasn't changed just because it dropped over a hundred bucks. In fact, gold could fall to $800 and still have its long-term uptrend intact.

This recent drop was nothing more than the fast money getting burned. But you know what? Every time gold prices fell in the recent bull-run marked a great time to buy, not to sell. Gold shows the classic pattern of making higher highs and higher lows.

Until this pattern reverses or the US figures out a way to make the dollar start moving higher, gold will be a great investment. And just because I talked solely about gold here, that doesn't mean that I think less of silver. In fact, I think buying silver will get you a better return than buying gold.

I also give the name of a small company that's set to rocket. The upside on this company is so phenomenal, that I'd be willing to sell my neighbors three children to get the funding to put into this.

So I hope I've given you some confidence here about gold (and silver too). The truth is we're in a very exciting time. And this might be your last chance to acquire an ounce of gold for under $900 ever again. So you should capitalize on it as soon as you can.