Gold, Gold stocks – 5 Reasons why Goldbugs are Right

Posted by Steven Levinson - Seeking Alpha

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Whenever I read cheap-on-analysis articles by the likes of Cullen Roche, Vahan Jinjigian, Henrique Simoes, or any of the other fallen heroes of the anti-Gold movement, my face shrivels up like I just ate 8 lemons and I stammer something out loud in response that probably makes me sound like Harland Williams from There’s Something about Mary. Their analysis usually is summed up along the lines: “gold is really expensive guys”. To which I usually respond “compared to what, you idiot?” with admittedly, a few of my favorite four letter words spliced in between. While I believe that gold is a bubble (all exponentially increasing assets usually find their way into one), by any measure, gold is still years from popping.

To prove this, I want to compare the “Gold bubble” to other bubbles, show how they are different (working in gold’s favor) and instill upon any reader geopolitical certainties why Gold has nowhere to go but up for the next few years. Finally, as promised to all Steven Levinson blog followers, I want to explain to gold bugs who get freaked out by Soros’ “ultimate bubble” comment and want to know what he meant.

… more HERE