The world’s most famous gold bug, Goldfinger, who went the way of all James Bond adversaries, would probably turn over in his grave if he knew what was happening to the love of his life.

Despite such gold price catalysts as a sliding greenback, spreading inflation worries, a burgeoning trade deficit, and relatively low short term interest rates, the precious metal hasn’t shown much glitter this year.

Granted, it’s up — a bit more than 3% versus last year’s close of $635 an ounce — but all things considered that’s hardly a sparkling showing following robust gains of 18% in 2005 and 21% in 2006, gold buffs say.

Not only that: Gold holders are getting increasingly nervous because selling is hitting the precious metal. A week ago Thursday, for example, gold tumbled $15.50, to $667 an ounce, its lowest level in nearly two months. That was largely due to some firming in the greenback, which since July 2001 has fallen 32% against a broad basket of currencies.

Gold, currently trading at about $657, has also suffered this year from unrelenting selling by some central banks, as well as competition from a ballooning stock market and rising investment in the markets of fast-growing overseas economies. There have also been unconfirmed rumors that China may soon begin selling some gold.

Still, several gold enthusiasts say they think a higher price is on the way, but several are leery about the near term. One is global money manager Jim Rogers of Rogers Holdings, who favors gold, but not in the short term. Pointing to one of the biggest ever binges of gold speculation in the futures market versus the commercial shorts (a reference to gold miners and the jewelry trade), he sees the prospects of a sizable near-term correction.

Once the speculators get kicked out of the market, it’s time to buy, he says. Of the opinion that the commodities bull market has another 10 to 15 years to go, Mr. Rogers figures $1,000 gold is on the way, likely sooner than later, spurred by depleting gold mines and the ongoing debasement of practically all paper currencies as a result of nonstop money printing by the central banks.

Another gold tracker, Standard & Poor’s Leo Larkin, is convinced “we’re in a gold bull market” that should drive the price to $750 by the end of the year. Near term, though, he believes the dollar is coming off an oversold level and could stage a bear market rally, which might put some pressure on gold.

He says he thinks such a rally will be of a short-term duration, pointing out that the rising trade deficit is now 6% to 7% of our GDP, which will ultimately lead to a lower dollar. Diminishing mine supply is seen as another gold catalyst.

Mr. Larkin notes that there wasn’t much exploration when gold was lower, and he believes it will take until 2010 or thereabouts before there’s any meaningful increase in mine output. Yet another gold plus is thought to be a resumption of gold purchases by some central banks as a means of diversifying out of the dollar.

His clear bottom line: “Gold is going higher.” How much gold an investor should own, he says, depends on risk tolerance. For most investors, his top picks are Barrick Gold Corp., the world’s largest gold mining company, and any exchange-traded gold fund. (In ETFs, several gold bulls I spoke to favor StreeTracks Gold Trust, which tracks the price of gold on a percentage basis. It trades on the Big Board under the symbol GLD.)

The associate editor of the Safe Money Report newsletter in Jupiter, Fla., Michael Larson, says he figures the sinking dollar has driven gold to close to $700 and rising inflation will push it this year to $800 or higher. Noting that central bankers around the world are pumping money into the system, that oil is surging again along with the prices at the gas pump, and that a plunging dollar is helping to drive up the costs of imports and commodities, Mr. Larson reckons a higher level of inflation is clearly at hand.

His top gold play is precious metals miner Kinross Gold, with 45.3 million ounces of gold reserves. Other favorites are Agnico-Eagle, StreeTracks Gold Trust, and Northgate Minerals.

Money manager Raymond Stahler, a principal of Londonbased Stahler Dearborn Ltd., believes gold should be part of every portfolio, generally about 5% to 7%. “A portfolio minus gold at this time is like walking around naked in zero-degree temperatures,” he observes.

So why isn’t it a lot higher? “Don’t worry; it will be once the dollar resumes its downward trend and falls maybe another 4% or 5% by year end for all the reasons everybody knows,” he says. “I think $800-an-ounce gold is almost certain this year and I’m amazed we’re not there yet.”

dandordan@aol.com