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THIS JUST IN: NO GOLD BUBBLE—YET—SAYS WELLS FARGO April 20, 2011 (0 comments)
San Francisco, CA--Despite gold having crashed through the $1500 mark, economists at Wells Fargo Securities say they don't believe it's headed for a collapse along the lines of the tech bubble that burst in 2000 or the oil bubble of 2008.
In a report released April 20, Wells Fargo's economists point out that in inflation-adjusted dollars, the all-time high for gold would be $1,945/oz, reached in January 1980. The oil bubble didn't burst until it had broken records, and they say the same will hold true for gold. It has some room to run, so far. Nor is the size and speed of the gold increase trajectory paralleling the oil or NASDAQ tech bubbles.