Tuesday, October 06, 2009

Gold Reaches Record High, No Headlines

6 October 2009

We've seen this one before.

Gold has just reached an all-time record high price this morning ($1043.20 USD), and the topic so far hasn't been important enough to make even the business headlines. You have to go the the dedicated gold sites (such as Kitco) even to find mention of the topic.

Today's economic news? Australia has raised interest rates, and more and more countries are talking about moving beyond the US dollar as a global reserve currency (I'll grant you, that is gold-related news!)

When you do read about gold in the business news, one finds extensively stated opinions that gold is overbought if not in "bubble" territory, that it is rising too far too fast against the dollar, and other - shall I say - misinformation....

OK. Gold is trading at its highest nominal price in human history. That is not a news item as of this morning. Do you think gold is an investment bubble at this juncture in time?

No, I don't either.

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