Gold price have increased exponentially in the past one month. In the volatile world market, gold have an intrinsic value, at least the investors hold-on to that belief. Monetary institutions around the world have been buying gold as a safe investment. However the demand has led to a bubble market for the gold. In 1980 an ounce of gold had a market value of $2400 (adjusted to inflation). Soon after, the gold market entered a major correction phase and many investors got burned.
Similarly at present,the gold price is hovering in and around $1900 - $2000 range. The economists are predicting a major correction in the coming month, Sep 2011. How ever similar warnings were issued in Aug 2011 and nothing happened.
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