, Columnist
Goldbug FOMO Is Setting Up the Market for a Fall
The yellow metal’s rise defies economic gravity — and reason.
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Markets always look their very best at the top - that's increasingly the case with gold as it nears $3,000 a troy ounce. It's behaving like a Veblen good, an item for which, contrary to the laws of economics, demand increases with price. Can the momentum be sustained?
One key sign of froth is plausible-sounding pet theories for extra cavalry coming over the hill. A couple of beauties are doing the rounds presently.