Is gold in a bubble? 🤔
$GOLD relentless rally might be on borrowed time at least according to John Higgins, Chief Markets Economist at Capital Economics. He warns that the metal’s price has soared far beyond its “fair” value and could now be in bubble territory.
📉 At the start of 2025, gold was already near its inflation-adjusted 1980 peak. Today, its real price is ~60% above that level and more than 3x its historical average.
Traditionally, gold’s strength is tied to falling real yields or rising inflation. Yet both trends have moved the other way:
Treasury yields have climbed 📈
Inflation has trended down since its post-pandemic peak 📉
This disconnect suggests speculative forces like central bank diversification, ETF inflows, and even plain FOMO might be driving prices rather than fundamentals. Higgins warns that such rallies often end abruptly.
Still, some argue that structural demand (e.g., from China and reserve managers) could keep gold elevated even if a correction hits.... Show More
If you look at every market indicator, they all scream "imminent-crisis", it would be unnatural not to hold Gold.. Not to mention S-E Asia, China-Taiwan conflict is pretty close and Russia-Ukraine will not stop for years.... Show More
Big decline will happen when everyone is all in and the market is priced to perfection not when there is so much negativity.The forward pe isn't in bubble territory yet compared to 2000 and 2008 and for this multi year bull run to end it has to go parabolic first but also believe we're getting... Show More
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Mon Dec 08 2025 17:00:06 GMT+0000 (Coordinated Universal Time)
