Gold: Bulls v Bears

bullbearsWe’ve spent some time trawling the interweb for bullish and bearish views on gold by some credible analysts.  The thing that strikes you immediately after just some basic searches is how difficult it is to find any decent, substantive arguments for why gold is in a bubble about to burst.  In the Bear-corner we managed to find a very recent article by the famous Nouriel Roubini, but the other bearish piece we included struggles to really hit home with a profound or convincing bearish gold message.  The Bull-corner was easy to populate, and not because there are more bulls than bears, but for the following three reasons.

  1. Gold bulls tend to be more passionate about gold period, and so probably care more to write about it.
  2. Given gold’s torrid 1981-2001 period, the burden of proof still rests with the gold bulls.
  3. ‘Gold-bearish’ or ‘gold-ambivalent’ is the default position for most investors while ‘gold-bullish’, believe it or not, is still the minority position.  The minority always speaks with a louder voice to get itself heard.

So, take time to read through these articles by some respected investors and analysts, as well as by some lesser known pundits, and make up your own mind.  Is gold a bubble about to pop or is it going stratospheric?

HUMAN ACTION CHALLENGE: Human Action puts a challenge out to readers to find good, credible gold-bearish views out there in cyber-land, or write us your own piece about why you think gold is a bubble about to pop.  If it’s good, we’ll publish it.



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