Is Gold in a Bubble?

Is Gold in a Bubble?

Please see Hussman’s arti­cle for the charts he mentions.

I agree with Huss­man about the bub­ble in com­modi­ties not only because of the spec­u­la­tion angle but also because of unsus­tain­able growth in China. When China stalls, it will likely take com­modi­ties and the com­mod­ity pro­duc­ing coun­tries down with it, notably Aus­tralia and Canada.

Finally, gold is act­ing more like a cur­rency than a natural-resource com­mod­ity (because that is what it is). It may or may not be immune to a commodity-related sell­off, and much depends on the actions of cen­tral banks down the road.

Mike “Mish” Shed­lock
http://globaleconomicanalysis.blogspot.com