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Definitive evidence gold is not a bubble?
Posted: Thu Jan 03, 2013 12:33 am
by murphy_p_t
http://kingworldnews.com/kingworldnews/ ... Abyss.html
Is this definitive evidence that gold is not at the end of its bull run?
Re: Definitive evidence gold is not a bubble?
Posted: Tue Jan 08, 2013 7:34 pm
by Stunt
Tough to say. I am a hard money advocate, but I don't think it's as easy as comparing to US money supply. While the US's monetary base has increased drastically, other countries were not hit hard by the financial crisis or have rolled out austerity and the global monetary base has not increased at the same rate. Remember gold knows no borders and isn't just a currency hedge for the US exclusively...
According to the same chart from your source, since 1990, monetary base increased 7 times. The global monetary base in the same period was up 3.6 times. Gold has gone up since 1990 over 4 times (400 to 1600).
Not as definitive as I would like...
Re: Definitive evidence gold is not a bubble?
Posted: Wed Jan 09, 2013 8:32 am
by whatchamacallit
Re: Definitive evidence gold is not a bubble?
Posted: Wed Jan 09, 2013 4:54 pm
by MachineGhost
No hyperbolic blowoff top == no bubble.
Re: Definitive evidence gold is not a bubble?
Posted: Fri Jan 11, 2013 12:52 pm
by dragoncar
MachineGhost wrote:
No hyperbolic blowoff top == no bubble.
Even so, "no bubble" doesn't mean gold prices won't go down, either. Just like "bubble" doesn't mean that it won't go up.
Re: Definitive evidence gold is not a bubble?
Posted: Fri Jan 11, 2013 7:12 pm
by MachineGhost
dragoncar wrote:
Even so, "no bubble" doesn't mean gold prices won't go down, either. Just like "bubble" doesn't mean that it won't go up.
True, but we won't have a drawn out Japanese-style deflation without a mania blowoff top.