Gold might be the next bubble. I am not a gold bug and I don’t hold any gold positions but I think you are going to see a large run up in gold. Right now people are running from the dollar and the bearish sentiment is huge. Most people are going to the Euro and Pound. However, these currencies could easily fall out of favor. There is a credit and housing bubble in England, Spain, France, Australia, New Zealand, Ireland and many other places. Right now the dollar is getting slammed but the English economy is in just as bad a shape as we are and will probably fall first. This will begin to be repeated all over the world and the currency market is the largest market in the world. I think when more and more economies are exposed to be on the decline you will see more and more money heading to gold. Compared to the currency market the gold market is very small and you could see very fast run ups. I will start buying gold after the next major correction in the market. I am waiting because I want to see how many people will sell gold when the stock market drops to cover other positions. Anyway, that is my guess right now until I see more market reactions.
