Is gold a bubble waiting to burst?

A BUBBLE IN GOLD?

Paul Duncombe, head of Schroders' multi-asset investment solutions, questions whether gold is heading into bubble territory following a spike in the price of the precious metal on QE2.

All the talk of currency wars and a new round of quantitative easing by the US Federal Reserve have lifted gold prices from one all-time high to another. With prices up more than 25% so far this year, gold is heading for its 10th consecutive annual gain - its longest winning streak in almost a century - outperforming global equities, bonds and most other commodities. In times of uncertainty and austerity, nothing glitters quite like it. But - as gold takes the medal for one of the best-performing asset classes of the last decade - many investors are concerned that the relentless rise ...