Well it has been 2 days running now that the establishment have been running in the news that a Chinese central bank official is saying that gold is in a bubble.

It first started with a news release that did not even name the journalist and then of course other news sites picked up on it and have been repeating it for the second day now.

No matter which story I read however, I can not find where this official actually states that gold is in a bubble. What is quoted is mention of her worries about certain assets being in a bubble and that the Chinese central bank must buy assets with long term viability. The only mention of gold is by the article writer hmmmmmmmmmmmmmm. Hahahahahaahahahahahahah.

Well it sounds to me that she could very well be talking about US treasuries far more than gold. Gold has been around and used as the currency of choice for thousands of years while countless paper currencies have come and gone. Gold is hardly in any sort of a bubble and has a long way to go before it is.

Unfortunately some news letter writers that I have respect for have also picked up on this STORY and are giving credibility to it by mentioning it in their commentary. This probably is a reflection of their fear that gold has advanced too fast or even the possibility that they have sold out and are missing the boat as they hope for a downturn in the price.

Stick with the fundamentals because in a rigged market TA has absolutely no worth.

I have also noticed a number of commentators suggesting to put your stops vert tight. I personally never use stop losses and think that they for the most part are nothing but an instrument used by the establishment to help in there games as they run them.

Volitility is the name of the game and the action is coming thick and fast. You can be a trader and compete with the establishment with their computer trading programs ( goooooood luck ) or you can be an investor, look at the big picture and used fundamental analysis and sit back and watch things unfold while not worring about the day to day static.

All in my honest opinion of course.

F.F.