Thanks for the link xerxes_phI would agree that recent price...

Thanks for the link xerxes_ph

I would agree that recent price action has shown that the gold price may be a bit 'frothy' atm.

But hey, this is completely normal in a market that has and is performing so well.

It is the very nature of market participants to behave like this. Why wouldn't people be scrambling over each other tooth and nail to get into one of the best performing assets available when most popular assets are not doing so well and have much uncertainty surrounding them.

For mine, the reasons that have brought the POG to where it is today are not going to just disappear any time soon.

Most savvy participants are just starting to wake up to gold for the investment insurance that it is and the further potential that it has.

By definition of an asset bubble, elevated prices can last for years but eventually reverse and usually suddenly.

The previous 'bubble' in gold was 1973-1980 when it shot up by 10 times what it was and then fell back to almost where it started.

So is gold in a bubble now? Maybe - it looks like it could be (although we do have some healthy periods of consolidation this time) but it's got to fall a long way and probably suddenly (to around 350-500) before we can call it another bubble. For that to happen we need a lot of debt to disappear and Cinderella to re-emerge almost immediately.

Remember, if you adjust for inflation gold isn't even past that 1980 peak yet.

For these reasons I would hesitate to call a bubble in gold atm, it may well prove to be part of a longer term trend. I can't see prices reversing back to historic lows any time soon.

The bubble that we should all be focusing on right now is one of the biggest in history and that is the GFC of 2008-201x.