Aren’t Silver and Gold in a bubble?

The premise of this question whether or not silver and gold is in a bubble is wrong which would define gold as an investment. Although it takes even professional financial experts to wrap their heads around this: How can real money be too expensive?? You better get some as long as you still can do so with our fiat currencies…as “they” are debasing the currencies in small increments.

How can you anybody talk about “gold in a bubble”? For example 100 years ago a brand new man’s suite cost ca. $20. Today it costs a four digit Dollar amount or in other words exactly the price of 1 oz of gold. That means in terms of lawful money the gold price remained the same – 1 oz of gold. In legal tender, price got inflated from $ 20 to whatever the price of gold is right now.

purchasing power

this example shall clearly illustrate what real money is. We all have been conditioned to believe that this monopoly printed paper would be worth anything. But it is not. It represents debt. The more of it you have, while you may be thinking yourself getting rich – the more debt you will be liable to, …public debt. That’s the trick. After an almost parabolic rise in the valuation of gold and silver lately, one may ask him-/herself “How much upside is left?”, “Is Gold in a bubble? If so, when will the bubble burst?” During all these years we have met buyers and non-buyers. The latter thought back then already, that gold and silver must certainly be in a bubble. Today they know better…
This chart illustrates Gold London (USD) since 19.03.2001

gold price


Today I came across an interview with one of the most successful investors in the world, Jim Rogers, and I could not have answered the question better than him, whether silver is in a bubble or not: “If silver would continue to go up like recently without collapse of the US Dollar, I would be worried.”
…mmh, a lot of content in that short statement. Something to think about…

In order to put this into perspective, if – and how much – is gold and silver really overvalued, or in other terms, if – and how much – upside is still left, here are some milestones to break even with first on the way up:


As you can see, gold is nearing its inflation-adjusted 1980 high- and that peak was a spike that lasted only one day.In the right column you can see the return needed to reach those levels.

From their 1971 lows to January 1980 highs, gold rose 2,333% (!), while silver advanced an incredible 3,646%. This table applies those  past gains to our 2001 lows and shows the prospective returns from current prices.


Instead of using the manipulated Consumer Price Index (CPI) as a measure for inflation, let us implement John Williams’ Shadow Government  Statistics, whose data is much more realistic. This is what is left as your potential upside until the real inflation adjusted former all-time highs.will be broken even with:


As you can see, gold and silver are still far undervalued, and the upside left is HUGE. So, if you were hesitating getting into the market and trying to do ‘market-timing’ by waiting for those commodities to come down, forget it, this is not going to happen. The past has proven over and over again, that people attempting to do market timing have lost more money with trying to time the market, than through corrections while being invested into the same.
 And for now, compared to how much “confetti” has been produced, gold and silver is cheap! Gold in a bubble? No, it is not the Gold and Silver that is in a bubble – it is the printed paper, we (still call it money).

In order to get some gold and silver simply go to Gold Souk.

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