Gold and silver are in a bubble, if the bulk of economists and financial pundits are to be believed. With no dictionary definition of what exactly a financial bubble is, we are left to our own devices to interpret the significance of such a proclamation according to our own experiences.
Lets say we consider a bubble the phenomenon whereby the prices paid for a given commodity, be it homes, coffee, copper, rubies or tulips, rises rapidly relative to an average market history timeline as a result of sudden and irrational investor demand, and then shortly thereafter sees a price collapse to a point lower than when the bubble started.
Consistent with all commodities that can have been categorized as recipients of bubble phases over the last 200 years is that at that onset of the bubble formation phase, the utile value of the commodity in question becomes the subject of elevated speculation in anticipation of an increase in demand as a result of a predicted rise in utile consumption. (more)
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