Oct 032011
An interesting perspective on gold is shown in the following graphic:
Gold has dropped since the chart was created.
According to the analyst, gold at its recent high was not a bubble when compared to its relative value to other financial assets. That is one way of looking at gold.
There are other analysts who claim gold is in a bubble and will eventually come down in price.
Time will tell which camp is correct.
I think there is dollar bubble and paper gold/gold derivatives bubble. But it is not possible that the word “bubble” could be applied to something which so few investors, especially the institutional investors, are excited about.