Gold is making new All Time Highs now almost on a daily basis. This after the S&P downgrade and gold braking Jim Sinclairs important target of 1,764 USD/Oz that he talked about in London at the GATA conference. 1,764 is where confidence in the fiat system is lost. Gold is today, at the time of writing, at 1,869 and change having almost touched 1,900 this morning (European time). In main stream media we read about the “gold bubble”. My readers know this is complete non-sense. If we were in a bubble, how do you think gold stocks would preform? During the dot com mania some companies on Nasdaq traded at P/E values of 45 (12 being “normal”)! Today, gold stocks are cheaper than during the dip of 2008 when gold was at 685 USD/Oz. Just look at this chart made by my friend “LAS” who sometimes has his charts published at Jim Sinclairs website. If gold stocks are as cheap as when gold was at 685 and gold is now at almost 1,900, where do you think gold stocks should be? Do you think we’re in a bubble?
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