Events That Have Effected Pm's In The Past

Yes, fiat is born of debt and basically borrowed into existence. But my point was that I differentiate between currency and bonds. They have some similarities but also quite a few differences.

Yes, there could be a bubble in PMs but the conditions that would have to occur for that to happen are pretty bizarre. First, instead of 1% of the population buying PMs, we would have to have a lot of people buying PMs and bidding up the prices of PMs to truly outlandish numbers. I'm not sure what a "lot" would be in this context but maybe 25% or more and we are a LONG way from that. Next, the media and most financial advisers would have to be on-board and would have to be talking up PMs as viable investments. To this point, they have never done this, even after a 600% rise in PM prices from 2000 through 2010. If a stock performs that strongly, the financial media and the financial advisers get hysterical over it. Think Apple Computer or Google here.

So, bottom line? Yes, a PM bubble is possible and will likely occur at some point but so far, not. Like every other bubble out there, it will likely pop before anyone recognizes that it IS a bubble. Prior to that it will just be another great investment that is doing very well.