Long gold has been one of my favorite trades since QE1 and I think it will continue to be a good trade until governments stop printing money / providing cheap liquidity to banks, which shouldn't be for a couple of years according to the Fed (LINK).
To all the gold bears - yes gold does act as a source of cash during periods of deleveraging / derisking, so there could be a better entry point to get long gold. This is a good entry point for gold calls because you can take advantage of the recent sell-off both in price and implied volatility. Even if gold goes lower you can make money if it does so at a rapid pace as vol should spike.
I tend to like the bull thesis around gold more than silver as central banks continue to buy gold at these levels (LINK). Silver is more volatile and therefore could outperform gold, but I'm looking for the better risk / reward.
GLD Jan $160 calls which trade around $1 (18vol) would be worth $5+ if GLD retests the 50 day moving average of $165.
Technical Charts - GLD and SLV are oversold (~2 standard devations from 50d moving average)
Price and Implied Volatility Charts - both price and vol have been heading lower