There is a lot of hype surrounding gold as an investment opportunity. The poor economic situation has subdued the value of other assets, and gold prices have risen as people look for safer investment options.

In reality, the increase in price of gold is a trend that is similar to the recent real estate bubble or the oil bubble. Discerning institutional investors tend to park funds in assets they believe will improve in value, owing to which prices escalate for that particular asset. [Read more…]