The Gold Bullion Bubble

Granted, gold prices haven’t moved as far or as fast some other precious metals and commodities, but its move has been the most noticeable, if only for the metal’s notoriety. Well, today was a kind of milestone, with spot gold prices leaping through the heretofor unbreached $600 barrier. Remarkable stuff.

There is a fascinating factoid in a related article on the WSJ site tonight:

Half of the pension funds, hedge funds and other institutional
investors polled by Barclays in February said they had no commodities
exposure
in 2005. Most are now expanding their total commodities
allocation between 1% and 10%.
 [Emphasis mine]

Related posts:

  1. Hedge Funds & the Technology Bubble
  2. Flight to (Perceived) Quality & First-Time Venture Funds
  3. Absentee Alpha
  4. Burton Malkiel vs. The Hedge Fund Industry
  5. Why Are Endowments Better Venture Investors?

Comments

  1. Michael Robinson says:

    Paul: “with spot gold prices leaping through the heretofor unbreached $600 barrier.”
    Or, maybe not:
    http://www.kitco.com/LFgif/au1980.gif
    That’s nominal. Adjusted for inflation, the unbreached barrier is even higher.

  2. Good point. My original graph is in nominal dollars, so it’s legit to say that the “real” barrier is higher yet in current dollars.