Taipan Daily’s Justice Litle review the current trends of gold, the U.S. Dollar and small caps. Finding surprising strength in the dollar in the short term, he finds greater strength in gold and gold stocks for the long term.

As gold once again breaks the psychologically important barrier of $1,000 an ounce, all the pundits are wondering if it will last.

Most of the time, we’re no fans of Wall Street analysts. They’re often behind-the curve, biased, and flat out wrong.

In the spirit of not suffering from confirmation bias, in today’s Notes we will try to make the bearish case against gold. So before you storm Notes HQ in Buenos Aires craving blood, hear us out. Many of our staff here love gold and have long term holdings.

The commodity markets are surging today. Are the bulls charging because of investor fear or is something else going on? Here’s the answer.

While I was in Canada last week, Smart Profits readers sure did pound the mailbag! I returned to find several questions to my recent column on how to execute covered call trades. For example, one reader wanted to know how options can work with short positions – and referenced doing so on Yamana Gold (NYSE: AUY).

Gold stocks are taking a drubbing, as are most of the other classic inflation hedges. Why? Because inflation fears have abated. The deflationist view of the world is the one that now prevails. That’s why 10-year Treasury yields have dropped all the way down to 3.35% from a high of 3.95% one month ago.

Deja vu all over again… are stocks just following the 2008 playbook?… Bill Jenkins shares his favorite global currency… Gold bugs beware: Gold chart forecasts a sell-off… Yet league of famous funds (and Chris Mayer) are buying up gold stocks… Plus, are we reading this right? A bank bails out the government?

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.

One way to hedge against inflation is to buy gold and silver. This is what hedge fund legends John Paulson and David Einhorn are doing. As Justice Litle pointed out last week in Taipan Daily , Paulson and Einhorn “have gold and gold stock positions running well into the multi-billions for their respective funds.”