By Jordan Roy Byrne
Nov 20, 2009 (MarketOracle) —

…First, let me debunk the bubble callers and those who say Gold is a crowded trade. I’ve heard at least three different people say this…

Here are some excellent charts. (see source)

Does it look like the Gold market is anywhere remotely close to a bubble? Apparently, the bubble callers and crowded trade folks haven’t done their research. Doesn’t look crowded to me.

Even if a few more people own gold, my bet is that they don’t own enough of it. Gold is under-owned. John Paulson, the great hedge fund manager is pretty bullish on Gold, but he doesn’t own much more than 10% in his fund. (Perhaps that is why he’s starting a Gold fund). Dennis Gartman, I believe only owns around 5% (He’s said so on television). Months ago, Steve Leuthold was on Bloomberg and he was bullish on Gold but said he only owned 1-2%. A time ago, most folks would have 10% of their worth in Gold, whether it was in a bull market or not. Most people who own gold investments, don’t own enough…

Judging from history (and there are many examples), Gold is at the start of a major move higher. Our target for this move is $2,100-$2,300 in the next 12 months.

It is interesting how these major breakouts occur at a time when fundamentals are their strongest. How can anyone call Gold a bubble when gold production continues to decrease? How can anyone call Gold a bubble when monetization is rampant? How can anyone call Gold a bubble when the FHA and FDIC will need to be bailed out? How can anyone call Gold a bubble when the US deficit is in the trillions of dollars? The deflationary forces plaguing us are bullish for Gold. That is what the market is saying and that is how traders and investors are reacting…

The views of the bubble callers and wanna be contrarians are baseless, misguided and ironically, coming at the worst possible time.

[source]

Comment: Very nice charts accompany this nifty commentary.