Gold – the Ultimate Bubble?

What George Soros said, and what the press said he said...

"GEORGE SOROS warns gold is now the 'ultimate bubble'," ran the Daily Telegraph headline.

But what Soros actually said was:

"When interest rates are low we have conditions for asset bubbles to develop, and they are developing at the moment. The ultimate asset bubble is gold."

I don't know what was in the great man's head when he said this, writes Paul Tustain, founder & CEO of BullionVault. But it's just possible he was making rather more accurate use of the English language than The Daily Telegraph – who inserted the 'now' themselves.

Richard Russell - "Gold -- I believe that gold is building a bullish structure above its downside support of 1,000. As I write April (the active month) gold is selling at 1094, only 6 points from the 1100 level. Gold topped on December 3, 2009 at 1218.30. Obviously, that is the upside target. If gold rises above 1218 it will have "gotten rid" of a lot of amateur traders and gold-haters. It will also be squeezing a large short position. I consider the current slow, measured upward action of gold to be positive and characteristic of bull market action."

"Even the stupid, gold-hating central banks are buying gold. And what are they buying it with. The lousy fiat currency that they themselves are manufacturing. And how long will it be before those with gold won't swap their gold for fiat paper? That's the time when gold will go parabolic in the coming third phase."