Jonathan Davis Says Not Yet Time For Gold Bubble

Jonathan Davis of the Independent Investor blog opines that gold isn't in a bubble as of yet, because it's not that widely owned:

While the seeds of a future bubble in gold are being sown, and the gold price will remain volatile, if only to relieve momentum-chasers of some of their money, on most measures we are a long way away from any kind of climax. Despite growing media attention, gold remains surprisingly underowned by private investors. More people talk about it than actually own it in volume. Every trend-following speculator who is buying gold today for bandwagon reasons is, I suspect, comfortably matched by seasoned wealthy and professional investors accumulating gold for traditional defensive reasons, not to mention central banks desperate to reduce their dollar dependency.

This point jibes with a now-notorious video by Mark Dice: