Wednesday, April 27, 2011

52% Rise In BullionVault Trading Sparks Fears Of Bubble

The U.K.'s BullionVault reported a 52% increase in buying and selling of gold for last year, prompting concerns of a gold bubble.
Paul Tustain, chief executive of BullionVault, unsurprisingly dismissed such concerns: “Gold has by far the best long-term record of deep and liquid markets of any financial asset in history, and I see this continuing. Conversely, Western governments have dug themselves ever deeper into triple-A rated debt, from which I still don’t see a credible exit plan capable of preserving value for their creditors.”

Of course, such concerns are easier to dismiss for those with long memories. The supposed popping of the gold bubble has been called for even when gold was in triple digits.

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