Gold, palladium and silver prices are continuing to rise. According to an article by Amanda Cooper in todays Irish Independent gold prices are "closing in on a tenth consecutive yearly gain as doubt re-emerged over the US economic outlook and weakened the dollar." Spot gold is currently priced at $1,409.85 an ounce. Palladium prices have hit a nine year high while silver prices also increased.
Further evidence of increasing gold prices can be seen as the number of companies now buying used gold from the public is also on the increase.
According to the article increasing prices are said to be "fuelled by investors seeking an alternative to increasingly volatile currencies, stocks and bonds, against a backdrop of an uncertain US outlook and Europe's debt crisis."
The article questions "Is gold a bubble?". Denis Gartman of the Gartman Investment newsletter responds "Perhaps", and goes on to discuss the increasing trend.
We are all familiar with Tulip-mania and the more recent Irish property bubble. The consequences of the burst property bubble are evident. Could the same happen with gold? One would imagine that people should be more cautious before engaging in speculation of increasing prices and before investing in gold.
http://www.independent.ie/business/stocks-markets/gold-still-gaining-as-economic-doubts-weaken-dollar-2478405.html
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