ping
bump
Hurry. The S&P EMini just broke below Friday’s close :)
The real bubbles are the U.S. Treasuries bubble and the dollar bubble.
Gold - in dollars - is up in nominal price mainly because the dollar contines to slide in real value as the printing presses roll. The political will is lacking to make real change in fiscal policy, and this ensures that the dollar will, in the years ahead, continue the longer trend of devaluation.
Gold and Treasuries did the same thing in the 70’s. It’s recession behavior where those who managed to hold on to their wealth take a flight to safety and don’t come back until it’s safe, which it clearly isn’t.
I’d be careful believing any bubble talk unless there is well reasoned and well supported logic behind it that leaves little doubt irrational exuberance is at work.
People look at gold the wrong way. It doesn’t “rise” in purchasing power so much as ALL paper, debt-based fiat currencies eventually fall against it. An ounce of gold bought about 300 loaves of bread in ancient Persian times, an an ounce of gold buys about 300 loaves of bread today. Compare what a dollar buys today to what a dollar bought even fifty years ago.