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.
That’s how I used to think. But now I’m starting to think the only way gold wont collapse is if the dollar does. I don’t see the dollar collapsing in the next ten years...just a mild gradual decline...not enough to keep gold up.
I think the PTB are trying to goose sheeple into Treasuries. If they get enough to voluntarily buy them, then they won’t have to work on expropriating 401ks, a la Argentina. After the Brown election, the lefties are realizing folks aren’t taking a shine to their redistributive horse-hockey.
I’ve continued to buy quality shares of good-dividend [3%+] paying companies with clean balance sheets and reasonable PE’s ranging from 8-15x with good PEG #’s. Maybe I’ll fall on my face, but I’d rather own equity than debt.
If rates go up, unless you own the T bill directly and hold for the duration, you’ll get hosed if rates increase. Which will eventually happen.
I’m not an experienced investor, so if I’m off-base, please let me know!