Though J.P. Morgan is bullish on gold, Wells Fargo believes it's a "bubble that's poised to...


Though J.P. Morgan is bullish on gold, Wells Fargo believes it's a "bubble that's poised to burst," and asserts "there could be substantial risk to gold once the fear that the world is coming to an end subsides." Gold futures are up 26% this year, and have tacked on another 0.6% today to reach $1,795/oz.
Comments (8)
  • Leftfield
    , contributor
    Comments (4039) | Send Message
     
    "there could be substantial risk to gold once the fear that the world is coming to an end subsides."

     

    That may take 10 years or more, by my calculations, given the extraordinary mess we're in that could only be created by the extraordinary, unethical, unprincipled criminal minds such as we see in power now.
    17 Aug 2011, 02:45 PM Reply Like
  • izzy4real
    , contributor
    Comments (14) | Send Message
     
    Sure glad I don't bank with these guys!
    17 Aug 2011, 02:48 PM Reply Like
  • SA Editor Stephen Alpher
    , contributor
    Comments (560) | Send Message
     
    This just in: Gold declares WFC a bubble about to burst, claiming the bank is valuing the real estate assets on its books at imaginary levels.:)
    17 Aug 2011, 02:51 PM Reply Like
  • labas112
    , contributor
    Comments (445) | Send Message
     
    That reminds me of a movie quote "No one sees Gold, but Gold sees everything!"
    17 Aug 2011, 03:08 PM Reply Like
  • AxiosCap
    , contributor
    Comments (312) | Send Message
     
    These morons STILL! don't understand what is driving gold. Idiots.
    17 Aug 2011, 02:59 PM Reply Like
  • Swass
    , contributor
    Comments (419) | Send Message
     
    It is worth considering that most of the strongest moves in precious metals happen at the end of a trend. This is slightly off focus though, as what really drives gold higher is based on inflation and/or the fear of inflation. The fear buying has already occurred, but no hyper inflation. What if deflation strongly sets in? Under either deflation or inflation, there can be concerns that 'the world is coming to an end', but that doesn't mean gold goes higher under both circumstances. During the crash in 2008, there were fears that the world was coming to an end. Gold went down more sharply than it ever went up. This was due to deflationary conditions that occurred after hyper-inflationary fear buying had brought gold to an historical peak. Now there was more of the fear buying than into 2008, so what happens now? I'm not saying it goes higher or lower, but people should think about both possibilities rather than having a one-track mind that says under every circumstance gold goes higher. In fact, gold made some huge gains when the world was actually much more stable than right now.
    17 Aug 2011, 03:06 PM Reply Like
  • Brandon Gibbs
    , contributor
    Comments (239) | Send Message
     
    yes GLD long term, GLL short term
    17 Aug 2011, 03:09 PM Reply Like
  • buybuybear
    , contributor
    Comments (389) | Send Message
     
    Something about Chavez and wanting his gold back, not GLD, but the actual stuff... oops
    17 Aug 2011, 04:56 PM Reply Like
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