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John Authers

A Mighty Short Squeeze May Be Building in Gold

An increase in demand for physical deliveries could trigger a parabolic rise and cause problems for banks.

Show me the (physical) money.

Show me the (physical) money.

Photographer: Akos Stiller/Bloomberg

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There is plenty of talk about a bubble in some new companies with untried business models. Think, particularly, of Tesla Inc. But is there something equally unsustainable going on in a commodity whose virtues have been known for millennia, and remain unchanged? Spot gold rose to a record of $1,923.2 an ounce in Asian trading Monday: