More and more people are saying that gold is not in a bubble - this actually makes me more nervous that it is (b/c the pundits get bubbles wrong all the time).
I don't doubt that at some point, it will become a bubble.
I agree with this analysis by Dennis Gartman on CNBC. Gold is probably not in a bubble because there is no mass-participation yet.
I was going to address my predictions a few days ago, and I had forgot to. At this moment, gold has dropped all the way to 1779.40, down almost $50 from its NYMEX open today. Over the weekend, I had stated (unfortunately not recorded online nor elsewhere) that gold will probably pull back to below 1800. I also acknowledge that it could go below $1700, and I hope it does (I'd like to buy a little more); however, I do not believe that it will. I do not see it dropping below $1600, though.
Silver is right around $40 right now. I think silver is a great buy. If it goes down to $37 or $38, it will be an even better buy.
Given the recent FOMC decision to hold the federal funds rate extraordinarily low for at least 2 years, I think both metals will continue their upward trend.
Note:Pay attention to Bernanke's speech this Friday at Jackson Hole. His address at Jackson Hole a year ago introduced the possibility of QE2. Now, the recent FOMC decision is kind of a de facto stimulus, addressed here , but there may very well be another formal asset purchase program on the horizon. I obviously don't think there should be.
A hint at another monetary stimulus will be very bullish for metals.
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