Gold - the Ultimate Bubble

By: Paul Tustain | Thu, Feb 11, 2010
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What George Soros said, and what the press said he said...

"GEORGE SOROS warns gold is now the 'ultimate bubble'," ran the Daily Telegraph headline.

What Soros actually said was:

"When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold."

I don't know what was in the great man's head when he said this, but it's just possible he was making rather more accurate use of the English language than The Daily Telegraph - who inserted the 'now' themselves.

"Ultimate" means final. It does not mean "mother-of-all" except near the Thames Estuary, an area made popular with journalists by its proximity to their factories, but not the sort of place an Hungarian hedge fund manager would hang out.

Mr Soros of course would be correct in saying that the final asset bubble in a string of asset bubbles tends to be gold. But since an estuarine interpretation inverts the guru's advice, you will need to decide for yourself which he meant. So here's some data:

If gold is in a bubble, it's not going to make much of a pop.

 


 

Paul Tustain

Author: Paul Tustain

Paul Tustain
Founder & CEO
BullionVault

Paul Tustain is founder & CEO of BullionVault, the world's largest store of privately-owned investment gold bullion.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events - and must be verified elsewhere - should you choose to act on it.

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