Best of the Week
Most Popular
1. Will Iran Kill the PetroDollar? - Marin Katusa
2. Tail Events, Isolation, New Normal Of Hyper Monetary Inflation - Jim_Willie_CB
3. Kodak's Former Moment, A Lesson for You, Me and America - Gary_North
4.The Five Stages of Collapse and the Coming Paradigm Shift in Silver - Steve_St_Angelo
5. UK Recession 2012 Certain as Bank of England Prepares to Ramp Up Money Printing Presses - Nadeem_Walayat
6. HMRC Extends Tax Deadline by 2Days for Self Assessment Online Filing - Nadeem_Walayat
7. Gold GLD ETF Investors Mass Exodus - Zeal_LLC
8. Credit Crisis Perfect Storm, Robert Prechter Discusses What's Backing Your Dollars - Robert Prechter
9. Best Cash ISA 2012 to Reduce Stealth Inflation Theft of Value of Savings - Nadeem_Walayat
10.Financial Markets 2012, When Leverage Fails - Ty_Andros
Last 5 Days Analysis
Learn How to Apply Fibonacci Retracements to Your Stock Index Trading - 8th Feb 12
Do Low Interest Rates Power Stock Markets Higher? - 8th Feb 12
SILVER: The Illegitimate Child Of The Commodities Family - 8th Feb 12
A New Reason Gold Stocks Will Soar - 8th Feb 12
The Deception of 0% Interest Rates, High Costs and Capital Destruction - 8th Feb 12
Bring Down the New World Order with Free Market Education - 8th Feb 12
Gold Increases In Value During Inflation or Deflation Scenarios - 8th Feb 12
Gold Holds Steady as U.S. Dollar Hits 2-Month Low - 8th Feb 12
Markets Risk Train Chugs Along, Overbought Does Not Mean a Correction is Coming - 8th Feb 12
Banking, U.S. Housing Market and Mortgages - 8th Feb 12
Has Zero Interest Rate Policy Held Back Economic Recovery? - 8th Feb 12
Graphite and Rare Earth Metals for the 21st Century - 8th Feb 12
Gold Odysseus Journey Continues! - 8th Feb 12
The Fed Resumes Printing Money to Monetize U.S. Government Debt - 7th Feb 12
Timing the Market: Predicting When the FED Will Act Next (Feb 12) - 7th Feb 12
U.S. War With Iran? - 7th Feb 12
Abandoning the U.S. Dollar for Gold - 7th Feb 12
Financial Crisis American Gridlock, Why The “Left” And The “Right” Are Both Wrong - 7th Feb 12
The Fed is Engineering Barack Obama’s Re-Election Campaign - 7th Feb 12
Finding Fundamentals Key to Gold Stocks Investing - 7th Feb 12
US Debt Will Explode Without Changes - 7th Feb 12
Gold Compared to Past Bubbles - 7th Feb 12
Illusion Of Economic Recovery – Feelings & Facts - 7th Feb 12
In the Gold Bullring - 7th Feb 12
This Precious Metal Could Rise 125% Over the Next 10 Months - 6th Feb 12
Washington Heading for War on Syria - 6th Feb 12
Gold "Rollercoaster" Heads Yet Lower as Greece Hits "Crunch Time for Bankruptcy" - 6th Feb 12
Did Friday's Gold Price Action Signal a Stock Market Top? - 6th Feb 12
Monday Financial Markets Madness – What’s This Greece Thing? - 6th Feb 12
Stock Market Investors Dangerous Times Ahead, Will Impact Gold - 6th Feb 12
Gold, Stocks and Euro Fall As Possible Greek Debt Default Looms - 6th Feb 12
Bond Investors Pour into Emerging Market Debt in Hunt for Higher Yields - 6th Feb 12
New Spy Technology Could Be Worth Billions - 6th Feb 12
U.S. Fraudulent Election Year Unemployment Data, Lies, Lies, More and Bigger Lies - 6th Feb 12
Double Liability for Bank Shareholders, Officers and Directors - 6th Feb 12
Stock Market Next Short-term Top in Sight - 6th Feb 12
U.S. Home Foreclosures and Shadow Banking: Why All the "Robo-signing"? - 5th Feb 12
Look at What 'Worked' in the Great Depression - 5th Feb 12
Putting Good U.S. Employment Numbers in Perspective, College Education Isn’t Enough - 5th Feb 12
Stock Market Weekend Update - 5th Feb 12
The Doomsday Machine - 4th Feb 12
Are US Treasury Bond Markets a Sell? - 4th Feb 12
Obama’s Refinancing Swindle, Banks Want to Dump Millions of Risky Mortgages Onto FHA - 4th Feb 12
The Euro Zone and the Crisis of Sovereign Debt - 4th Feb 12
Is the U.S. 'Decoupling' From the European Debt Crisis? - 4th Feb 12
The Crucial Pillar of the New World Order - 4th Feb 12
Gold Junior Mining Stocks Poised to Rebound - 4th Feb 12
U.S. January Employment Situation Shows Widespread Improvement, but Short of Full Employment Mandate - 4th Feb 12
U.S. Non Farm Payrolls Interesting Market Divergences - 4th Feb 12
Gold and Silver Mining Stocks Tops Might Be Just Around the Corner - 4th Feb 12
Critical Materials for Critical Technologies - 3rd Feb 12
Junior Gold Mining Stock - 3rd Feb 12
SOPA, PIPA, The State of US Surveillance - 3rd Feb 12
Essential Investor Preparations for The Big Crisis - 3rd Feb 12
U.S. Jobs, El-Erian U.S. Structural Issues Aren't Being Dealt With - 3rd Feb 12
What Every U.S. Investor Should Know About Inflation - 3rd Feb 12
U.S. Mint Gold Coin Sales Return to Fundamental Driven Demand - 3rd Feb 12
Gold Bull Market Bigger than Ever - 3rd Feb 12
Banking Crisis 2012 "Robo-Signing" of Foreclosure Affidavits Just Tip of Iceberg - 3rd Feb 12
Stock and Financial Markets Crash is Coming, Key Signs of Reversal - 3rd Feb 12
Real U.S. Economic Picture: "There is No Recovery" - 3rd Feb 12
Poland Gives Green Light to Massive Natural Gas Fracking Efforts - 3rd Feb 12
Where to Invest 2012 and What to Avoid - 2nd Feb 12
Liquid Natural Gas Stocks Are Set to Take Off - 2nd Feb 12
Godzilla Will Come Out of Tokyo Bay Before Japan Economy and Stock Market Rebounds - 2nd Feb 12
Gold Challenges Resistance at $1,750/oz – Technicals and Fundamentals Remain Very Positive - 2nd Feb 12
German Central Bailing Out Europe - 2nd Feb 12
In the Wake of Davos: "Strong Economic Medicine" for the European Union - 2nd Feb 12
The American Economy is "Dead": The Illusion of Economic Recovery - 2nd Feb 12
Irish People Bailout of Bond Holders, Vincent Browne v The European Central Bank Video - 2nd Feb 12
How Far Will Debt Deleveraging Go? How Much LSD Can an Elephant Take? - 2nd Feb 12
Great Deals on Gold and Silver 2012 - 2nd Feb 12

Free Instant Analysis

Free Instant Technical Analysis

Market Oracle FREE Newsletter

How You Can Identify Stock Market Turning Points Using Fibonacci

Gold Price Bubble, Is George Soros Right or Wrong?

Commodities / Gold and Silver 2010 Feb 03, 2010 - 06:54 AM

By: Dudley_Baker

Commodities

Best Financial Markets Analysis ArticleGeorge Soros has been quoted recently as saying gold is in a bubble. Now that's an interesting comment but based upon what?

Who are we to question the comments of one of the wealthiest men on the planet?


And don't you love it when the 'big name players', like Soros, Jim Rogers, Roubini, Marc Faber, Bob Hoye, Pamela & Mary Anne Aden and David Nichols have differing opinions?

How can the average investor make an intelligent decision when even these 'big boys' can't agree? Well, for me, I love it and say, let's ask a few more questions and then look at some charts.

What do 'they' mean by a bubble?

When I hear the word bubble I immediately think of a parabolic move. A market that has gone straight up and this could be for a period of weeks, months or years.

Parabolic moves and thus bubbles in my opinion were seen in the NASDAQ market into 2000, the oil futures spiking to $147, the parabolic rise in the housing stocks and the Japanese Nikkei, etc.

This next chart on Light Crude Oil shows the big bubble-parabolic move from approximately $10 to $147, (almost 15 times) from 2000 to the top in June 2008. Chart courtesy of www.sharelynx.com

Now let's look at gold:

Gold: where is the parabolic move? There is none. Look at this beautiful monthly chart below on gold from the low in 2001. This is a chart of beauty and it is not a chart of a bubble.

Could we be in the early stages of a bubble, yes, but we are no where near to a peak and/or a parabolic move. Look for yourself.

When we start to see gold go parabolic, rising day after day and everyone in the world getting excited and joining the party, then we will know gold is in a bubble. We believe that gold's big move up with be a moon shot like this chart of Homestake Mining from 1932 to 1934. Our challenge then will be to exit before the masses and we see the strong possibility of this event happening within the next 18 months.

We would therefore be in the camp with Jim Rogers, Bob Hoye, David Nichols, Marc Faber and Pamela & Mary Anne Aden. Up is the direction and the remaining question is how high?

We believe investors are being given the rare possibility of a once-in-a-lifetime-opportunity, yes, and a parabolic move in gold. The question is what will you do with it and do you need some assistance?

For those readers unfamiliar with our services:

  • PreciousMetalsWarrants.com provides an online database for all warrants trading on the natural resource companies in the United States and Canada.
  • InsidersInsights.com tracks the buying and selling of corporate insiders with a focus on the junior mining and natural resource sectors. Buy and Sell Alerts are issued as deemed relevant based upon our analysis.

We encourage all readers to sign up for our free weekly email.

Dudley Pierce Baker
Guadalajara/Ajijic, Mexico
Email: support@preciousmetalswarrants.com
Website: PreciousMetalsWarrants
Website: InsidersInsights

Dudley Pierce Baker is the owner and editor of Precious Metals Warrants and Insiders Insights. Articles are written by Dudley Baker along with contributing editors, Arnold Bock of Mendoza, Argentina and Lorimer Wilson of Toronto, Canada. PreciousMetalsWarrants provides an online subscription database for all warrants trading on junior mining and natural resource companies in the United States and Canada and a free weekly newsletter. InsidersInsights alerts subscribers when corporate insiders of a limited number of junior mining and natural resource companies are buying and selling.

Disclaimer/Disclosure Statement:PreciousMetalsWarrants.com is not an investment advisor and any reference to specific securities does not constitute a recommendation thereof. The opinions expressed herein are the express personal opinions of Dudley Baker. Neither the information, nor the opinions expressed should be construed as a solicitation to buy any securities mentioned in this Service. Examples given are only intended to make investors aware of the potential rewards of investing in Warrants. Investors are recommended to obtain the advice of a qualified investment advisor before entering into any transactions involving stocks or Warrants.

Dudley Pierce Baker Archive

© 2005-2012 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


Post Comment (Moderated)




Commenting Issue - If on submitting you are returned to the main Index Page (50% chance) then your comment has not been accepted, Follow below steps for 95% chance of comment being accepted.

  1. Click your browser Back button (from main index page).
  2. COPY your comment text from Comment box (i.e. copy to clipboard).
  3. Press PAGE Refresh - You should see the message "You are not authorized to carry out this operation"
  4. Paste your comment back into the comment text box.
  5. Click Submit - If everything goes okay you will remain on the article page with the message "Your comment was held for moderation and will be reviewed shortly".
  6. If instead you are again returned to the main index page then repeat 1-5, alternatively EMAIL to comments @ marketoracle.co.uk quoting the article number.

FREE Deflation Survival GuideFREE Updated 118 Page Independant Investor E-book