Is gold overvalued? i think YES!!
pRE CONDITIONS FOR A BUBBLE:
- Easy credit conditions
- A significant trend-breaking event
- The lack of plausible valuation measures
- An appealing story
Lending is still weak but crucially interest rates are low. That helps given that gold has no yield; In effect, the opportunity cost of holding gold has disappeared
Gold has no valuation issues (no yield or earnings); Since people hold it as a store of value, it can be worth whatever they want it to be worth.
And it has a plausible backstory; Spendthrift governments are monetising their deficits like the Weimar Republic before them