Is Gold a Bubble?

Gold had sold for $35 an ounce, then shot up to $675 during the last bubble, peaking in January 1980. (I’m using monthly averages throughout this article.) That’s cool, buying at $25 and selling at $675. However, as gold was shooting up, plenty of new “investors” were buying, and there were plenty of people who got in on the boom at above $600.