Because you use the term 'bubble', this implies an extreme over valuation with little or no real fundamental support for the current price and that once burst it will not recover until the fundamentals have changed.
This is not the case with gold, you or anybody else here can't build a case for a bubble in gold.... yet every time the price rises we get "talking head" prattle about a bubble.
I feel duty bound to take pot shots at bubble mongers who can't support their claims with any sort of fundamental insight. The problem is the inability to distinguish between price an value, modern "investment" seems completely price fixated... where have the value investors gone? You know the ones that back their assessment that the market has it wrong and is under pricing an asset? Warren? Warren? Are you there????
The definition of a "bubble" courtesy of Wikipidia:
"An economic bubble (sometimes referred to as a speculative bubble, a market bubble, a price bubble, a financial bubble, a speculative mania or a balloon) is "trade in high volumes at prices that are considerably at variance with intrinsic values".[1][2][3] It could also be described as a trade in products or assets with inflated values.
While some economists deny that bubbles occur,[4][page needed] the cause of bubbles remains a challenge to those who are convinced that asset prices often deviate strongly from intrinsic values.
While many explanations have been suggested, it has been recently shown that bubbles appear even without uncertainty,[5] speculation,[6] or bounded rationality.[7] It has also been suggested that bubbles might ultimately be caused by processes of price coordination[8] or emerging social norms.[7]
Because it is often difficult to observe intrinsic values in real-life markets, bubbles are often conclusively identified only in retrospect,
when a sudden drop in prices appears. Such a drop is known as a crash or a bubble burst. Both the boom and the burst phases of the bubble are examples of a positive feedback mechanism, in contrast to the negative feedback mechanism that determines the equilibrium price under normal market circumstances. Prices in an economic bubble can fluctuate erratically, and become impossible to predict from supply and demand alone."
Here is the link in case you can't google it :
http://en.wikipedia.org/wiki/Economic_bubble
As far as I can see, the price of gold collapsed regardless of the reasons, overpriced, inflated value or conspiracies. I couldn't give a rats clacker. If you have lost money in gold or are exposed I sympathise for you.
I haven't swallowed any theories. I get it wrong from time to time and when I get it wrong I don't blame the market. I accept that I got it wrong then decide how long I am prepared to stay wrong.
"Every price rise is due to "irrational exuberance" ???????? Seriously? So now we have and irrationally exuberant but correct market? Isn't that some sort of oxymoron?"
Not quite sure what you are trying to say with this one. I can't see where I said "Every price rise is due to irrational exuberance". However I find it difficult to believe that anyone experienced in the market would deny that irrational exuberance often plays a role.
I also can't see where I have attacked you either, as distict from expressing an opinion, so there is no basis for the "talking Heads" or "bubble mongers" slag offs. If anything it highlights the weakness of your argument. As per the above definition I consider my comments valid, the gold price bubble popped.