Singapore just confirmed Gold bubble about to burst
In Singapore Budget 2012, trading in investment-grade gold and other precious metals are exempted from the goods-and-services tax (GST).
This is done to make Singapore a more attractive place to trade gold and other precious metals. However, Singapore is coming late to the show. Gold has been rising fervently for more than a decade, you can read about a lot of news concerning gold and adverts asking people to invest in gold because it is an inflation hedge.
But, Warren Buffett has warned recently about believing in the self-prophecy and that gold is essentially a non-income producing asset.
The next few years will be tough for gold and precious metals markets because interest rates will have to go up unless FED wants runaway inflation which is detrimental to the economy.
Entry filed under: Watch your step.