27
September
Five-fold rise in gold price is not a ‘bubble' - WGC
27 September 2010 The Independent
The gold price surge, which saw the precious metal reach record highs last week, will not turn into a bubble that will burst, says a new report.
The World Gold Council looked at previous bubbles, where prices rapidly surged and then just as quickly collapsed, such as the dotcom boom of the late 1990s and the US housing collapse of 2006-07.
Statisticians found that such bubbles followed similar patterns, mainly defined by two unusual spikes in prices. Although the gold price hit a record $1,280 per troy ounce earlier this week, the price increases have followed a relatively stable course.
