Soros explains his comments on gold as the ultimate bubble
Courtesy of EDWARD HARRISON at Credit Writedowns
George Soros has finally come out and said what he meant by his comments about gold being the "ultimate bubble." The National Post reports the following exchange from a Reuters interview.
“Gold is the only actual bull market currently. It just made a new high yesterday. In the present circumstances that may continue,” Mr. Soros said in an interview at a Thomson Reuters Newsmaker event.“
It will be very interesting to see if there is a decline in the next few weeks because…everything that makes a new high almost immediately afterwards reverses and disappoints,” Mr. Soros said.
“I called gold the ultimate bubble which means it may go higher but it’s certainly not safe and it’s not going to last forever.”
The chart I just put up about gold’s performance which David Rosenberg used to make a bullish case for bonds actually paints gold and bonds in a negative light. A contrarian would say that this measure of outperformance over a decade is mean reverting. At a minimum, I agree with Mr. Soros’ contention that "this is a period of great uncertainty so nothing is very safe."
