Gold gained yet another powerful ally yesterday — hedge fund icon Paul Tudor Jones. The man who famously called Black Monday in 1987 and the Nikkei crash a few years later now thinks “gold appears to be cheap.” In a note to his investors, Tudor said, “I have never been a gold bug. It is just an asset that, like everything else in life, has its time and place. And now is that time… gold’s value should increase as its scarcity relative to printed currencies increases.”

I bet you don’t own enough gold. Having physical gold in your possession is always a good idea in times of economic turmoil – there is no “uncertainty hedge” like it.

I was captivated by the Wall Street Journal headline “Bearish Big Investors Catch Gold Bug” by Gregory Zuckerman, because I don’t ever expect to see anything favorable about gold in the WSJ…

Gold Bug Ted Peroulakis of Investors Daily Edge suggests that “you should own some gold in your portfolio as an insurance policy…” He recommends this Gold EFT as a safe haven during the global financial crisis, because no matter what happens with the markets, gold will always shine.

The news just keeps getting worse, and I note with dismay that the latest report of initial claims for unemployment are 516,000 – well past the psychologically-important half-million mark – personal bankruptcies averaged “4,936 per business day in October” – which is up 8% from September and 34% more than October 2007.

Home construction maven Toll Brothers Inc. (NYSE:TOL) joined the choir of the footsore and cash-starved today by calling on government to make it all better. According to CEO Robert Toll, the U.S. government needs to “aid” the housing market, primarily by propping up home values.

A typical financial tale – where nothing goes as hoped for, and everything goes as it should…*** The rise of speculative capital…pumping up a bubble with a chip on its shoulder…*** The three vicious cycles we must face…an interesting TIME cover…and more!

Junior Mogambo Ranger (JMR) Azvitt sent a piece by John Browne of Euro Pacific Capital, who writes that professor Robert Shiller “has determined that house prices rose in line with inflation, between 1900 and 1995, at 3.3 percent per annum.

For the last few weeks, I’ve been calling for a long overdue correction in gold prices in my Commodity Trend Alert (CTA) service. While I’ve long recommended a diversified “gold-bugs portfolio” specifically to capitalize on gold’s long-term bull market, I’ve also been preparing my subscribers for this inevitable short-term pullback.