Gyroscopic Investing

In this paper we use a test developed by Phillips et al. (2011) to identify a bubble in the gold market. We find that the price of gold followed an explosive price process between 2002 and 2012 interrupted only briefly by the subprime crisis in 2008. We also provide a theoretical foundation for such bubble tests based on a behavioural model of heterogeneous agents and demonstrate that periods of explosive price behaviour are consistent with increased chartist activity in the gold market. The identification strategy yields economically intuitive results and is a simple alternative to using more complex estimation techniques commonly used in the heterogenous agents literature.

https://papers.ssrn.com/sol3/papers.cfm ... id=2166636

I think if they deflate the gold price by the global level of debt (which is rising geometrically), they will find that it is anything but a bubble. But that would mean acknowledging that gold really does have a fundamental value that affects its price, which they are trying to avoid.

According to the chart below, from 1970s to 1980, gold reached over $800 per ounce before it crashed.
I am not surprised in current condition, gold may reach to $8000 to $10,000 per ounce until 2020 before it crashed again.



Source: http://goldprice.org/gold-price-history.html