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Monday, June 6, 2011

Why Gold Doesn't Look Like A Bubble At All


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Monday, June 6, 2011
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Why Gold Doesn't Look Like A Bubble At All

Are precious metals like silver and gold in a bubble?

You hear this question asked a lot, and the answer you get usually depends on the respondent's pre-disposition to liking gold.

Gold bulls never see a bubble. People who say gold is just a rock have claimed there's a bubble for awhile.

Doug Short takes a somewhat more rigorous approach, basically looking at the shape of bubbles, to see how gold stacks up.

Basically, it doesn't.

While it sort of looks like the rise of the Nikkei, for the most part, gold just doesn't resemble the parabolic rocketship seen in other famous bubbles, notably the US market in the late 90s, or the Shanghai bubble that peaked in 2007.

Yes, it's been a wild ride, but bubbly? Not necessarily. Read »


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