Gold is actually down, trading near its 52 week low http://www.marketwatch.com/quotes/gc08z?sid=1633395 http://www.marketwatch.com/quotes/gc08z?sid=1633395 I

Gold is actually down, trading near its 52 week low http://www.marketwatch.com/quotes/gc08z?sid=1633395 http://www.marketwatch.com/quotes/gc08z?sid=1633395 I agree that hedge funds can invest in anything (unlike MFs, which are regulated) but if you look at the short term (4-week) T-bills their interest rates are down by as much as 62% since 2002, so the general consensus is that, that is where most money is getting drained. Why? They are the most conservative, safe investment choices available. If I may digress, this is not a good thing for the economy as we are not using that money to produce anything. Considering the Dow is down over 30% and counting for the year, 17.6% down seems impressive to me :-)