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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: freelyhovering who wrote (71704)	9/14/2011 1:39:46 PM
From: bull_dozer	Read Replies (2) \| Respond to of 78408

Short term bottom? Gold Not a Bubble? What Are You, Crazy? The price of gold is a bubble, and there's part of me that doesn't understand how this is even a debate. I think the following chart goes a long way toward backing up that story. In the chart above, we have the indexed performance of four things: the Dow Jones (INDEX: ^DJI) and the Nasdaq during the dot-com bubble, oil prices running up to 2008, and gold from 2001 to today. To put some numbers to it, the average annual closing price of the Nasdaq as of March 2000 had grown 22.5% per year over the previous decade. As of today, gold prices have returned roughly 21% per year over the past decade. I don't think we'd have much trouble labeling the three things we're looking back on in retrospect "bubbles." They rose sharply over a prolonged period of time, ran up to lofty prices that made little logical sense, and then crashed. Why is it so hard then to recognize that gold is a bubble? fool.com