Gold outperformed every single major equity index in the world...

Gold outperformed every single major equity index in the world in 2008. Poised to close out the year with a gain of less than 2%, the oft-maligned metal quietly retained its value even as hot-shot hedge fund managers lost billions for their clients.

While the ongoing financial tsunami will continue to affect every economy on the globe, Fools are reminded that the U.S. remains the epicenter of the quake that started it all. With the current fiscal policy of free money, and outlays reaching into the trillions of dollars, the balance sheet of the United States has been compromised to an historic degree. Unfortunately, I believe the reserve currency of the world faces a difficult road ahead.

Sources like Peter Schiff and Citigroup have suggested that gold may reach $2,000 per ounce in 2009. Legendary investor Jim Rogers recently declared his intention to exit all dollar holdings.

Last year, Goldman Sachs recommended shorting gold as one of its top 10 tips for 2008, so the bank's forecast for $795 gold in 2009 leaves me thoroughly unconvinced. Perhaps the enormous range of 2009 price forecasts -- between UBS' $700 and Citigroup's $2,000 -- offers a clue to the kind of volatility that may yet lie ahead.