Marc Faber has commented recently that there are bubbles everywhere, including commodities. Although gold has intrinsic worth, its price is still going to be affected by the laws of supply and demand. It has risen very quickly over the past couple of years, but if you believe those experts who tell us that our inflation has been fuelled by credit, then if and when a "credit crunch" comes, the scramble to disinvest in order to pay creditors and get ready cash may well mean a temporary drop in the gold price, too.
I think gold bugs are looking to the longer future, when governments desperate to get out of a slump may choose to print currency and so devalue it against precious metals, which they can't multiply at will. Meanwhile, if you follow Dr Faber, you may consider waiting with your cash at the station instead of boarding any of the asset trains, as he puts it.
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