Gold, Silver prices in bubble stage!
As Warren Buffett very lucidly put in his inimitable style that all the gold produced in the world so far can be put in a cube of a side of 64 feet. This cube of 64 feet has gold who’s value as on date is of 1/3 of U.S. economy. Now as a rational investor would you own 1/3 of Exxon mobil, Goggle, G.E. & other blue chip cos. Or you would own the gold in this 64 feet cube. To allow you to make a better choice, which though is very easy commonsensical ( but isn’t common sense the rarest sense!), please consider these facts:
The businesses mentioned have growth in their sales & earnings on their side so that their valuation may increase further in future.
During most of the 17 century, aluminium was more costly than gold! So you never know when the investor fancy will change.
So sticking my neck out again, I think that gold, silver may collapse from these levels or may increase by another 20-30% & then fall by around 50-60%! So we are in for interesting times.
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