Source: Financial Times, 28th May 2010

Gold looks like a classic investment bubble. Not just any mania, but the best-known bubble of the 20th century: the Dow Jones Industrial Average before it spectacularly blew up in 1929. Since the start of 2006, rises in the gold price have been spookily similar to the Dow's run up to 1928. Charts of gold soaring also look remarkably like the build-up to the 2008 oil price bubble. And the dotcom boom. Not only that: thanks to the record highs set by gold this month, the price has risen just under four-and-a-half times in the past decade, identical to the rise in the inflation-infested years to May 1978, with very similar recent performance.