Soros Interview at Davos 2010 On China Overheating, Gold Bubble, Bank Regulation

For the archives, here is a video of Soros being interviewed at Davos by BloombergTV. He talks about bank regulation, China overheating, bubbles, unstable markets and more.

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Next, according to this article at, George Soros said "the ultimate asset bubble is gold". So will gold peak at $1,225 or $5,000?


  1. A bubble in, say, shares, stocks or commodities happens when people believe it will "go up and up" (and is, as a rule, as with housing recently and "tech" stocks at the beginning of the millenium, again mainly driven by money inflation). Gold in contrast is a hedge against inflation and against looming sovereign defaults. Inflation by definition is the increase in money supply. There's no doubt that this has happened several fold in only two years. So there is inflation. Hence there is no gold bubble, as gold has not appreciated by a tenth even of what the monetary base has expanded!

  2. Time will tell gold's ultimate fate, it depends on many variables ($ velocity, prices, interest rates). In the end it's like CDS on the money, if people run for insurance on the money supply/purchasing power/safe haven it will super spike.


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