The Golden Bubble

November 17, 2010 Debbie Jacobs Hedge Fund News

Gold is “the ultimate bubble,” financier George Soros has declared this year on numerous occasions. “I called gold the ultimate bubble which means it may go higher,” Soros explained at a Reuters Newsmaker event in New York this September, “but it’s certainly not safe and it’s not going to last forever.”

Whether gold is or is not a bubble remains to be seen. What is clear so far is that gold rose sharply in 2010, with the SPDR trust up 23% by this point in the year. Spot gold reached a record high of $1,424.10 (not adjusted for inflation) in the earlier part of November.

On the other hand, gold had its largest one-day drop in four-and-a-half months on November 12th; even from its recent high, the precious metal would still need to nearly double in price (after including inflation) to reach its 1980 record.

George Soros, Gold, Record High, SPDR trust,

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