How to Deflate a Gold Bubble (That Might Not Even Exist) - NYTimes.com: "BY STEVEN M. DAVIDOFF
Gold is caught in a frenzy.
The price of gold reached a record high of $1,917.90 an ounce last week, not adjusted for inflation, and then promptly plummeted by about $120 an ounce. The volatile trading is again spurring claims that gold is in a bubble, one that will pop badly.
As with past booms in housing prices and Internet stocks, the four-year surge in gold prices raises the same fundamental questions for market regulators. How should they react? Should they react at all? How do they even know if a bubble exists?"
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