gold, bubbles, soros, ikn weekly

Here come two hundred and thirty-five of the 13,000+ words contained in IKN40, published yesterday. The spot was part of the normal 'This Week' preamble and the subject was George Soros' comment on gold bubbles and the stupidity of the analyses that came from the usual goldbug idiots (found swarming at kitco and other fine places of bullshit).

A lesson I’ve learned in the last three or four years is that bubbles eventually pop, but before they do that they also grow...and they grow to a size and a scale that “the sensible, reasonable analyst” just cannot comprehend. Right now I do see certain bubble-type scenarios either beginning or growing, but based on evidence there isn’t a single one that’s even close to popping. What we do have is the list of bears out there telling us “it’ll all end in tears, y’know” and I actually think they’re right. But it won’t end in tears next week, or the week after, or even next year. Greece will get its bailout, the Euro geldmeisters will rally round each other to show unity and the next, as yet unrevealed, manifestation of the crisis will find a solution too (be it a smart one or a Band-Aid). Is gold in a bubble right now? I honestly don’t know. The existence of companies like Cash4Gold suggest that it is, but the US monetary policy gives good reason to say that holding and buying gold at its present $1k+ levels is sensible. But is it a bubble that’s close to bursting? No, that’ll be when shares in Cash4Gold are trading at some silly number like 100x projected earnings and the company sponsoring NFL teams. I’m staying long the market and I’ll bet you an ice-cold beer that Soros is, too.