When to sell my gold?

Many have predicted gold to go all the way to at least US$2,000 per ounce. When will that be? By the end of the decade, declared Jim Rogers. And I believe in this point of view, thereby my recent foray into gold when it corrected back down to US$1300.
But do I really want to wait until the end of the decade to sell? That is 9 years away! Opportunity costs and the risk of currency conversion costs remember? Therefore, I turned to the internet for more information (could be I am getting uncomfortable about my gold positions). And, what I have found was an article that I found believeable and logical.

As of yesterday, Goldman Sachs has turned "bearish" on gold. In its latest article, it argued that trading gold as an inflation and dollar hedge is a spotty affair. More specifically, changes in the dollar explain only 16% of the changes in gold, while shifts in real rates explain another 12% and CPI accounts for a mere 18%.

In addition, in 60% of the episodes when inflation surprised to the upside in the post-World War II period, gold has actually underperformed inflation. As a result, gold has not been a consistent inflation hedge, although it is purchased as one en masse.

Moreover, gold prices have already advanced on expectations of high inflation and dollar weakness, suggesting that the failure of either to materialize, as we expect, could lead to downside risk. In addition, gold has volatility similar to equities, and has, in fact, experienced a larger peak-to-trough decline in price when compared to equities over rolling three-year windows since 1969 (-64.5% for gold vs. -56.8% for equities).

Moreover, the investment demand for gold is reaching euphoric proportions, with a recent press report announcing the availability of gold-dispensing ATMs in select markets this year! Already, the SPDR Gold Trust has become the second largest ETF in the world and now represents the 5th largest stockpile of gold globally, exceeding the gold reserves of China and Switzerland. The demand characteristics of gold producers have changed as well. Indeed, the major gold miners have spent the last several years repurchasing their gold hedges. With that process now near completion, another source of natural demand will be absent from the market this year.

So when will I sell? Pretty soon, but on strength rather than on weakness.