Is gold a bubble?

Ross Perez
on April 25, 2011

Is gold a bubble? Although prices have certainly risen recently, it is difficult to tell. By comparing the rise of gold recently to bubbles in the past, we can get a better handle on the nature of the recent uptick.

As you can see, gold has steadily risen over the past 70 months. Nominally the rise is almost identical to the rise of gold in 1980, but there has not yet been a clear inflection point where the price rises extremely fast (perhaps the defining characteristic of a bubble).

Is it a bubble? What do you think?


It's hard to believe this prediction when the article does not analyze the fundamentals of only points to price movements. Regarding supply and demand, it glosses over demand, and only insinuates that gold is a capital intensive industry, without providing hard numbers that analyze cost of production. It's a good article to get people to begin to think about the fundamentals of gold, but in it of itself contains no analysis of these fundamentals. I don't think gold is cheap today, but I don't think it's in a bubble. It has been the universal standard of wealth since the dawn of civilization, it will always have tremendous value. The out of control printing of fiat currency will sonn tell the whole story of where AU is headed! You can't print a limitless supply of gold or silver, enough said!