Will gold be the next bubble? The price of gold has raised a substantial amount over the last ten years. The price of gold has gone from around $250 an once to around $1240 an once over ten years. As governments continue to spend money, more and more investors are investing in gold.
Smart investors like Warren Buffet have said that you can spot a bubble when everyone you know is investing in the asset. During the housing the run up in housing prices leading to the housing bubble, you had the public investing in numerous houses in Florida and California. During the technology bubble of 2000 everyone I knew was invested in tech stocks like AOL, Microsoft, and Yahoo. Now it seems like a lot of people are investing in gold due to the fact that governments all over the world are spending a large amount of money to stimulate their economies after the housing bubble. When everyone you know is investing in gold it is time to get out because we are reaching the top of the bubble.