How can one fundamentally evaluate gold... it seems as if gold prices are portraying a bubble pattern.
Last time it got exponential, in the 80s, it ended up crashing back down.
It is interesting to notice that the last time gold skyrocketed the economy was bracing for a double dip recession.
Gold could continue to go higher as the problems in Europe escalate and their sovereign credit ratings deteriorate. It doesn't matter if it is fundamentally justified investors will flock to safety and buy gold. In the near term there is no reason for gold prices to decrease.
ReplyDelete