I won’t say that I think we’re in a gold bubble because an ounce of gold has lots of room to rise until it trades at historical prices for tulip bulbs or 100 shares of Nortel.
Fundamental analysis points to a high value for gold as well. In addition to its ability to sit around in piles near armed guards, an ounce of gold has many uses:
– shiny thing
– very small barbell
We have reason to believe that historical fascination in gold will persist. After all, modern inventions like computers and smart phones are in no way more interesting to look at than a shiny piece of gold.