Wednesday, December 2, 2009

Another Bubble

The price of gold over the past 5 years:


Bubble? I think so.

I talked to a man today, a small town banker, who asked if the Fed's easy money policies would lead us to a repeat of Weimar Germany. I laughed and told him that won't happen.

What I believe will happen is that gold will continue to make new highs, perhaps as high as $1500/$1600, and then precipitously drop.

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