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Is gold a new bubble?

Gold price rockets up as a natural haven during the turbulent financial markets.  It is a reflective type behaviour from the past when gold played a very specific role in finances. Currently, gold is a normal commodity with its price fully driven by the market. Therefore, the rocketing gold price likely repeats the trajectory of house prices before 2006.

Some experts say that it was a bubble in sense that the house prices were speculative. Gold can not be an exclusion from a "normal" market behaviour . When the market players understand this simple rule the price will plummet down. I expect this fall in 2011 because the negative tendency in economic performace has no alternative and there is  no really safe haven for assets.


Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.