Gold a bubble?! What a joke
By Deepak Rangan
CommodityOnline.com
Gold prices crashed 20% and the “gold doomsdayers” were going head over heels at having “predicted” it. The next few years may well prove them absolutely wrong.
First of all you need to have a clear picture of what the nature of the Gold trend has been over the past decade, evaluate its “crashes”, understand the current economic climate and then look for yourself. And then you may see an opportunity when others see risk.
Gold prices peaked to $1030 in March 2008, from whence it slumped to $685 in October, a decline of 33%
In September 2011, gold prices once again peaked at $1920, and then crashed to $1530, a decline of 20%
What one needs to understand is why these two gold crashes occurred?
It happened simply because of investors de-leveraging their positions in order to meet their liquidity requirements. As simple as that.
Nothing fundamentally has changed
-The US is still weak, struggling and reeling under high unemployment and a stagnant economy.
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