Saturday, December 12, 2009

Nouriel Roubini Says the Gold Price Rise Is a Bubble

Nouriel Roubini is out with a new report that says in part:
In recent months gold prices have risen dramatically, first breaching the US$1000 barrier, then jumping another 20% in the past few weeks, surpassing US$1200 before correcting downward again to around US$1100. Some gold-bug bulls say the gold price could eclipse US$2000 in the next couple years. Is that possible? Is the recent rise of gold prices justified by fundamentals? An analysis of the facts suggests that a good part of this rise in gold prices is driven by a bubble.
The rest of his report his behind a premium wall.

But the gist of his report can be gathered from his Twitter post on the subject:
"The New Bubble in the Barbarous Relic that Is Gold" Buy Spam rather than Gold
Like a dutifully religious Keynesian, Roubini has an obvious disrespect for gold. Who needs gold when you have Roubini around to tell each country how much paper money to print?

I am a gold bear at the present time, simply because the Fed is not printing money, so gold is ahead of itself. However, I have not stepped into the Keynesian church that worships paper money. Paper money printing will only bear false profits.

1 comment:

  1. Larry Summers was partner in RGE Economic Monitor. The same Larry Summers who authored the blueprint of gold price manipulation. NR is helping his boy out.