Gold Won't Quit

Gold keeps making new records.
11/25/09 $1,182.95 per oz.

I had expected a top around $1,150. I was wrong.
But this new high is only about 3% above $1,150. Maybe I am not as wrong as I think.
But maybe gold is going to $1,500.

Speculative markets do tend to overshoot fundamentals. Bubbles and anti-bubbles form time and again.

Is this a bubble?

Why would anyone hold gold? It is not a productive asset. It pays no dividend. Mostly it is used for jewelry. It is not that valuable industrially.

But you can't argue with the tape.

I like the return on one acorn. It turns into a giant oak tree. That is a real return.
A bar of gold stays a bar of gold. That is all.