to all, many of the folks here at agora are talking about a "gold bubble"..some are even suggesting that it will soon burst. i believe a lot of that talk is because most of the folks here have been in gold so long that they remember the stagnant $300oz period...

many things have changed since then and i wanted to get peoples opinions on where they think we are in this cycle..here's my thoughts, we are in a natural correction of gold prices (with a little bit of frenzy mixed in)..but if we are in a bubble, it's early in the cycle.

something i posted on another board.

1. cash costs are rising like mad! most producers are paying over $700oz just to produce the stuff...so how low can it go?

2. resources have dried up

3. industrial demand is way up

fact is, gold was $800 in the last "bubble"...that was 30 years ago! so how high can it go 30 years later? this time, it's the whole world rushing to gold, not just the west.

to be honest, i'm not sure how much of this rise in POG is "frenzy" and how much is just "setting a new market price"...we'll find out over the next couple years but i think the $500oz days are gone forever...