For some reason, after reading countless posts and articles today about how gold was now a bubble, I conjured up an old 80’s tune by Bon Jovi – “Runaway”.
Then finally, some reality, via Todd Harrison at Minyanville. You can read the link here, and there’s a chart below too. Hard to see, but it compares Nasdaq (2000), Real Estate (2005), China (2007), and Crude (2008) bubbles against today’s Gold (PINK). Suffice it to say, it looks like we’ve got plenty of room to run on gold, and silver is still at roughly a 60% discount to gold, according to Jim Rodgers.
Gold target $2,000? $5,000? Who knows, but as of now it’s best to hold on for a while – maybe a long while, as we are in a runaway move, and even then pullbacks will only offer opportunity to get in again.
Helicopter Ben’s going to win the deflation battle, but lose the dollar and economic war. As Todd at Minyanville often says, the leaders coming out of a crisis are usually not the same ones that led going into the crisis.
Trade the extremes!