As I have mentioned previously, the financial services industry is becoming increasingly populated with avid ‘bubble-watchers’. After having missed TMT in 2000, Real Estate in 2006 and just about everything in 2008, they’re determined to catch the next one. Alas, I admire this new found skepticism and respect the desire to be prudent. However, as always, group-thinking is the antithesis of good thinking when it comes to financial markets. Any group enterprise based on a conviction about the future course of prices is bound to fail. Here, I contend that gold is not in an exuberant bubble (yet!). Moreover, I liken the recent up-trend to the up-trend in the paper mark price of gold during the Weimar hyperinflation. [Full disclosure, we buy gold online very regularly.]

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