Tuesday, September 22, 2009

Gold: A Permanently Exuberant Plateau

1 oz (Troy ounce) of fine gold

Image via Wikipedia

By Adrian Ash

So speculative betting on gold going higher now equals a record-busting 752-tonne position in Comex futures and options, yet this is not a bubble according to Michael Pento of Deltaga.

Let’s say otherwise. Let’s say that gold prices, surging by almost $100-per-ounce in barely a month, are very much in a bubble…blown up by near-zero interest rates worldwide and a sharply negative cost of borrowing after inflation. Were that the case, the question before potential and existing investors would be simple:

Is this “irrational exuberance” or a “permanently high plateau”?

Gold: A Permanently Exuberant Plateau

Reblog this post [with Zemanta]