Nouriel Roubini warns about the New Gold Bubble . Gold has no intrinsic value he says

Nouriel Roubini wrote his clients earlier this month: "If you truly fear a global economic meltdown, you should stock up on guns, canned food and other commodities you can actually use in your log cabin."
Nouriel Roubini, economics professor at New York University and one of the few experts to warn about the epic U.S. housing bubble and its consequences when there was still time for central bankers to safely deflate it, this month warns about "the new bubble in the barbarous relic that is gold."

Reminding clients of his financial advisory service that gold "has no intrinsic value," Roubini finds no fundamental justification for gold's rise "with no near-term risk of inflation or depression."

Early this month, Hu Xiaolian, a vice-governor of the People's Bank of China, was asked if the central bank would be replacing more of its greenbacks with gold after a gold purchase earlier this year. He said that was unlikely given that the bank now worries about the emergence of a gold bubble.
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