Gold enters bubble phase



As far as I'm concerned, gold has finally entered the bubble phase. A special report on a mainstream site like MarketWatch (with 8 articles on it) probably portends to its popularity.

None of this means that this is the peak but I have a feeling fundamentals—if there is such a thing for gold—has been thrown out the window.

Comments

  1. Hello again, Sivaram,

    I reached the same conclusion a little while ago, although on different grounds. 
    As it turns out, I couldn't stay away from the gold market.

    ReplyDelete
  2. Sivaram VelauthapillaiNovember 23, 2009 at 7:54 PM

    Hey, how's it going? I see that you are still following investments to some degree :)

    It's not quite in the mania phase but gold is definitely not cheap. We'll know the final verdict within 2 years. The rate that the hedge funds are ploughing into gold, they will run out of money soon.

    Of course, I could be wrong and we may end up with high inflation, in which case gold won't look so overvalued...

    ReplyDelete
  3. I'm still ticking along. I hope all's well with you.

    Tp be honest, I think an episode of high inflation will trigger a huge mania. Inflation was still at double digits when the late-'70s gold bubble popped in 1980.

    ReplyDelete

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