The word ‘Bubble’ is brought to you by the letter ‘B’.
These are the words of an anonymous critic on my facebook stream, confident that gold is in a bubble destined for collapse. I have taken to occasionally posting the spot gold price to keep it in my readers’ consciousness. My most recent post drew criticism for expressing continued support for gold despite its $375, 20% tumble of late September, 2011. My critic continued:
Havent you learned your bubble 101 from the 08 collapse? … Not quite sure your metal motivation, but it is obviously a freight train that cannot be stopped.
My critic studied business, works in finance, and follows the stock market. I studied mathematics and I’m a lawyer. I have no formal training in either economics or finance. I do not follow the stock market. Yet, I have positioned myself so that I must justify my continued support for gold. Have I learned my bubble 101 from the 2008 collapse? You tell me. Read the rest of this entry »