Gold is now considered by many to be a standard allocation in a prudent investment portfolio rather than the Gold Bug Panacea and delusion it was 10 years ago. I have heard the arguments that it is here to stay and these valuations are real and for many only the beginning.
My head hears all the carefully crafted arguments, but my gut tells me and as a chart amateur, this looks like the top of yet another modern day bubble.
We should never forget we live in a Post- Truth Era. One must question all the analytic's. Value. now and perhaps always, seems driven by marketing, herd dynamics and manipulation.
I fear that when the herds next investment darling is widely recognized, money will move suddenly there from gold. Since gold's perceived role dwarfs its actual role in the modern world, the price might drop like the proverbial gold brick.
Does this Bloomberg article foreshadows a recovery. Perhaps it is time to take stock and profits. Read, consider, and reread my previous posts! They chronicle our recent golden chapter!
http://www.bloomberg.com/news/2013-02-15/gold-set-for-weekly-drop-as-equities-rally-soros-cuts-holdings.html
