The recent spike in volatility of both gold and silver markets has raised the level of debate over bubbles for these two key commodity markets.
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By definition, a bubble forms when the market loses touch with its intrinsic value.
Don’t Miss a Day: From crude oil to coffee, sign up free for Barchart’s best-in-class commodity analysis. Looking at the Cash Indexes for both gold and silver, I do not see existing or forming market bubbles, though we need to keep an eye out as trends continue to change.
Gold and silver have been the focal point of much discussion of late, not just because of the medals being awarded at the latest Winter Olympic Games in Milano/Cortino, Italy (a shoutout to Michele, my friend from Italy), but due to the ongoing debate of possible market bubbles. (There is an interesting side discussion we could have about the Olympic medals that are reported breaking, even if handled with a great deal of care, and market metals that have been breaking of late for other reasons.) Early Friday (the 13th, for good measure) morning we both markets posting solid gains as another (needless) US 3-day holiday weekend grows larger on the horizon.
