When you're convinced the central banks don't really have a grip on a global crisis, what do you do? You buy gold. Which is exactly what the likes of David Einhorn, of Greenlight Capital, is doing, as are Eton Park and TPG-Axon, according to the Financial Times. A bet on gold right now "is a bet against all paper currencies." Lots of research units are predicting that the price of gold will soar to more than $1,000.

While lots of funds load up on gold, some may want to rethink the dollar. It might be a good hedge against large gold positions. While gold has retreated a bit lately, many governments and funds are flocking back to the dollar, which is still seen as a safe haven. It'll be interesting to track both markets going forward.  

For more:
- here's a New York Times article on the dollar  
- here's the FT article on gold

Related Articles:
David Einhorn taking some hard lumps
David Einhorn: Wall Street rock star