It's good to read your posts again. They're always controversial and thought provoking. You've slipped under my radar for awhile.
I don't have an opinion on whether we're in a gold bubble or not. Only in hindsight will we know for sure. However it's my guess that everything in a free market can bubble. However you said that 'gold has never done that (bubbled)'.
I would disagree with that. From my experiences gold bubbled in its last run. From memory, (and my memory isn't that good and I'm not going to check), it would have been in the late 80's when it ran to about $800 an oz. (Those with an eye for detail will fill in the year and the amount).
Gold exploration companies were floated hell, west and crooked and I even made good money from stagging. Charters Towers Gold, Elders Resources, People were also buying physical gold. I bought an oz myself. I put it in a safe at home, forgot the combination. I still have the safe and the gold, but not the combination.
This time around I've been surprised by the lack of movement in the sp of gold exploration companies. I put it down to a lack of confidence in the global markets and the gfc. Many of us all lost good money in the gfc and punters aren't so willing to speculate at this point in time. I think in the past companies like GOA, FNT, etc would have run much more.
A sign of a gold bubble would be to see companies like these running on nothing more than a rumour. At the moment we sense a build up in GOA, but buyers' discipline is extraordinarily tight. Buyers will need assay reports for prices to move. Cheers Con
GOA Price at posting:
3.2¢ Sentiment: Buy Disclosure: Held
