Are Gold Prices in a Bubble?

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Are Gold Prices in a Bubble?

For as long as there have been financial markets, there have been bubbles. They are a necessary component of capitalism that occur in every sector across every market. A bubble is essentially a situation when prices become overinflated for reasons that have nothing to do with the fundamentals of the asset. The most notorious of bubbles was the tulip mania, when Dutch tulip bulbs sold for as much as 10 the average annual income… and then fell as quickly as they rose. Is Gold reaching bubble status? Here are a few points to consider:

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