Bubble Theorists Silent as Gold Hits Record Highs
Source: Seeking Alpha, Gold Price Today (4/12/10)
"Greece's warning shot has been so loud we no longer hear the gold bubble whispers."
What's important to note about the latest gold price rally is the lack of voices repeating the argument made back in December. Then, when the gold price set a new dollar high of $1,227, there were a growing number of market experts referring to a gold price bubble. Amongst them Nouriel Roubini and Fund Manager George Soros.
The media attention this received at the time was widespread. Popular news stations ran it on television; publications published it in magazines and online. Everywhere, it seemed, was broadcasting the same message. And, sure enough, popular opinion turned to believe in the experts' opinion. And it proved correct. . .From the December high, the gold price dropped to a low just above strong support at $1,050.
Today the gold price is reaching the same highs but no gold bubble speak has been expressed and that's important.
This could all change tomorrow, all it takes is one highly respected figure to whisper those bubble words and the media will be pushing the message. But nothing has happened yet, and in our opinion, its omission so far leads us to believe it's because of a wider change.
Problems in the euro, the pound and the dollar are pushing demand for gold to all time highs. The painful process of sorting out bloated economies is starting. As more take action to wean themselves off of the huge quantitative easing measures we'll surely see more upset. Greece fired the warning shot and its sound has been so loud we no longer hear the gold bubble whispers.
Stay with us for next week as we see how the markets react to the new eurozone plans and what they mean for the gold price.