Nouriel Roubini Predicts Gold Bubble Will Burst

Low interest rates, over-sized leverage and increased deficit spending have all contributed to the continued rise of gold prices. Still, some experts believe that the current gold bubble will collapse as the global economy starts to slowly recover, and the US dollar comes back into favor. For more on this, see the following article fromBullion Vault


Nouriel Roubini was "one of the few to predict the financial crisis" reckons the Financial Times. Yet plenty of other chicken littles, amateur and professional, had long warned of trouble ahead, too.

Hence the 150% rise in Gold even before the crisis broke in August 2007. Set against negative real interest rates, unfettered bank leverage and runaway deficit spending, gold's rare physical persistence looked a fair bet. And absent Armageddon or double-digit inflation, a growing handful of people chose to store a chunk of their change in metal, starting around 2001.
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