Fall in gold price the bursting of a bubble

Summary: This analysis from John Noonan at IFR Asia explains the recent plunge in gold as a bubble popping and the end of the bull market in gold. Between 2008 and 2011, gold rose by over 180% on safe-haven appeal following the worst financial crisis in generations. While central bank actions are considered unprecedented, Noonan believes they have worked and that investors are slowly getting out of gold in favor of stocks and other assets. And while the Eurozone crisis is a concern, many investors believe the European Central Bank has the tools necessary to avert a major crisis. Gold’s supporting factors, namely rampant inflation due to unprecedented money printing, have never really materialized according to Noonan. This is one of the key factors supporting gold over the last few years. If it’s indeed gone, we could see gold continue downward. Read more…