Gold bubble at 'significant risk' of correction, says Nouriel Roubini
Source: Bi-ME , Author: Bi-ME staff
Posted: Sat December 19, 2009 2:59 pm

INTERNATIONAL. Nouriel Roubini, a professor at the Stern Business School at New York University and chairman of Roubini Global Economics (RGE), who predicted the current financial crisis said the rally in gold prices is developing into a bubble and the precious metal faces "significant risks of a downward correction".

Writing in a research note reported by the Financial Times, Roubini said: "The recent rise in gold prices is only partially justified by fundamentals, and is in part a bubble that could easily go bust.

“The recent rise in gold prices is only partially justified by fundamentals, and is in part a bubble that could easily go bust,” warned Roubini in the report provocatively titled: “The new bubble in the barbaric relic that is gold.”

The note was circulated to investors last week but made available to the public Wednesday, the FT said.

Although “some diversification of gold in central bank and investor portfolios may make some sense”, Roubini writes in the report, there is “little reason” for bullion prices to rise rapidly towards US$2,000 an ounce unless the world enters a period of high inflation or slips into a depression.

Another potential cause of a gold spike would be if the fiat currencies were "rapidly debased via inflation;" this could happen if countries' ballooning budget deficits were not reined in, the note said, according to the FT.


'I don't believe in gold,' says Nouriel Roubini

Jim Rogers says Nouriel Roubini is wrong on gold bubble

Jim Rogers sees near-term rally in dollar followed by a currency crisis, gold at US$2,000 within a decade



date:Posted: December 11, 2017
UAE. Many companies are exploring how they can take advantage of disruptive technologies such as cloud, mobile and big data analytics to drive a new wave of end user experiences.
date:Posted: December 11, 2017
UAE. "The primary objective of any strategy should be to improve student outcomes through removing barriers to learning and improving students' social, emotional and behavioural learning and wellbeing."
date:Posted: December 10, 2017
UAE. Declining reserves and revenues, along with rising domestic energy demand, require a shift to enable performance and sustainability.