Gold is a very difficult asset to call. People bought gold when the world economy was riding on the commodity boom and they also bought gold as the financial system crashed and burnt in 2008. With gold hovering at $1100 an ounce, is it time for the gold bubble to burst? And if does what’s the bottom for gold? Our take is it will settle at $700 an ounce, the five year average for the gold metal.
It is interesting that you keep calling gold a bubble. A bubble is when there is parabolic rise in the value of the asset. Do you really see a parabola here?<br /> The fiat money bubble is about to burst. We have seen an explosion of debt and money printing - a veritable parabola. paper money will retrace to its fundamental value - zilch.
on Feb 3, 2010