Monday, May 16, 2011

Is Gold at a bubble stage?

Whilst Jim Rogers has stated that gold is not in bubble terrtory yet, many experts have argued that interest rates are going to rise soon. As such, this may increase the opportunity costs of holding gold, resulting in it trading considerably lower. In fact, George Soros, has been selling gold and silver, after significant buying of the precious metals for the past two years. I have sold off my gold too, but to me, the recent correction in gold has not changed my opinion that gold is still on an uptrend. In fact, although I will not be buying gold anymore since the currency conversion loss makes buying it meaningless for me, I will certainly still be looking to buy gold stocks on meaningful support.

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