If one does not learn from the past, one is destined to repeat it…
Comparing the Gold Bubble to the Tech and Housing bubbles brings an interesting perspective. While it is widely believed that the inevitable ‘Gold crash’ will happen, turning the shiny, precious metal into dull, over-valued metal; it doesn’t appear that transition will take place just yet.
Interestingly enough, Brett Arends of MarketWatch speculates that the Gold Bubble eerily correlates with the Tech and Housing Bubbles. However, the “Boom” portion of this cycle, for Gold, has yet to take place. Analysis of the chart (below), shows that Gold has yet to reach that ‘vertical’ phase when investors can grab a Pirates’ Bounty in the precious metal.
Now you ask, how does a commodity such as Gold figure into our expertise of ETFs? Well, ETF Stocks recently added Gold ETFs into our May Portfolios; as we are bullish on the precious metal for the foreseeable future.