Gold: Heads You Win, Tails You Win
Source: Seeking Alpha, Bespoke Investment Group (9/10/10)
"We hear people argue that gold will rise no matter what happens!"
Today, we read one article that quoted an analyst as saying: "Either a swift economic recovery or further dismal economic performance should bring new buyers into the market."
We realize there are certainly some valid arguments for buying gold, but a comment like this is not one of them. Now, we wouldn't necessarily go as far as to say that gold is in a bubble. After all, unlike a lot of recent asset bubbles where prices skyrocketed even as supply expanded, the supply of gold is relatively constrained. That being said, arguments presented as a win-win regardless of the outcome are usually found closer to the peak of a move than the beginning.