Find it here.
The main report is quite sympathetic, but by the end it has some choice quotes from the skeptics:
"It is wrong to see gold as an investment," says Tom Stevenson, investment director at fund manager Fidelity Investments. "It does not provide an income and is almost impossible to value. The fact that it is has risen in price is not a recommendation to buy; in fact it could be quite the opposite." Yogi Dewan, chief executive of Hassium Asset Management, agrees. The current surge in the gold price is based on "speculation and fear trades," he says. "It's absolutely crazy [for the price] to be at $1,500 - we are clearly in bubble territory."
"It does not provide an income and is almost impossible to value. The fact that it is has risen in price is not a recommendation to buy; in fact it could be quite the opposite."
Yogi Dewan, chief executive of Hassium Asset Management, agrees.
The current surge in the gold price is based on "speculation and fear trades," he says.
"It's absolutely crazy [for the price] to be at $1,500 - we are clearly in bubble territory."
Finally, some nice graphs:
I think gold/silver are in a bubble and I believe that the central banks - if they can stop squabbling with each other - are going to try to blow as big a bubble in gold/silver as they can in order to suck in "investors", i.e. late-coming, fairweather gold-rushers. Then they simply go short and stop buying and laugh all the way to the bank as the bubble pops and they walk off with the suckers' nest eggs. This is precisely what the insiders (Fed, GS, JP Morgan, BIS, other sovereign players) did with the real estate boom. But with gold/silver, the central banks have the additional motivation of punishing people for trying to fly to safety, that is, running away from their fiat money.
Clayton -
Clayton, I agree. But the problem with cartels (prisoner's dilemma) still remains. Yes, the fiat money cartel wins by acting out this scenario but, individually, it also makes sense for each member to discreetely (secretly) accumulate real assets (including gold) in exchange for what would become worthless paper if every other member of the cartel did the same. This creates an unstable "who blinks first" equillibrium, which is yet another argument in favor of gold. A break-down of the fiat money cartel would be the mother of all fat tails.
I'm not betting that this is the breakdown event. The real-estate bubble was bad - way worse than S&L '87 and all other bubbles that I know of besides the New York stock market 1929... but still not bad enough to fundamentally uproot the central banking order. All central banks have a larger interest in the continued existence of central banking than they have in screwing each other over. I can't see how things will get so bad that the central banks can't at least come together against any non-fiat money (i.e. gold or any commodity-backed money) without things being bad enough for a major war. So, my marker for "gold goes stratospheric" is war or maybe cataclysmic global famine or plague... it will require something truly cataclysmic. As things are going now, we are on the fast track to cataclysm, so (unfortunately) we may not have too long to wait. What a macabre world we live in.
"Primary Dealers are handing over their long term Treasury paper to the Fed as fast as the Fed will take it, and interestingly the dealers are not replacing it. PD inventory of Treasuries is crashing. This looks like distribution. They are piling up cash at a breakneck pace. But to what end? Are they preparing for the apocalypse come the end of June, or are they preparing to buy massive amounts of Treasury paper once the Fed leaves the market. The answer to that is a no brainer, but The Street wants us to believe otherwise.
Wall Street keeps telling us that there will be plenty of buyers for Treasuries once the Fed stops POMO. All the evidence that I now see points in exactly the opposite direction. Not only are the PDs treating Treasury paper like last week’s garbage, banks in general are also dumping the stuff. Only foreign central banks have been good public servants picking up tons of the stuff in recent weeks, but even that appears to have stopped. If they go on strike, it will be a catastrophe for the market." - WallStreetExaminer
The 'apocalypse' is the end of QEII. Also of note was Bill Gross of PIMCO recently liquidating their Treasury holdings. This is unheard of since he is the real 'Mr. Bond'.
Ah, what wicked webs they weave!