Clearly, enough of the big boys do not believe that the economy is improving, or they would not be putting their money into gold.
An alternative explanation is that momentum trading has gone mad once again, expanding further the bubble in the gold price.
A third explanation is that investors are becoming aware of the constraints on growth (and therefore returns), and are therefore searching for more reliable returns - or at least security.
Probably all three factors have contributed to the rise in the gold-bubble.
Will be interesting to watch how big the bubble grows and who gets hurt when it collapses
Prabhu Guptara
Leave a Comment: