George Soros tells Davos summit gathering that gold is now “the ultimate,” most worrisome, of financial asset bubbles. Scarily-accurate stock analyst Robert Prechter believes that if deflation takes hold, then gold could see a breathtaking 40% drop in value. This will not be a good thing. Not at all.

Earlier this week Robert Prechter of Elliott Wave told CNBC that this is perhaps the last chance to get out of stocks with the DJIA in quintuple digits. He also believes that stocks will fall below the March 2009 lows.  Prechter believes that if deflation comes, gold could see a 40% drop from its peak.  He feels gold is overbought and starting a new bear move there anyway.

George Soros called gold the ultimate bubble in Davos.  The billionaire said specifically that gold was in the midst of the ultimate bubble and that with low-interest rates the world financial policymakers are running a risk of making new bubbles .  He even noted that when rates are low there are conditions for asset bubbles to form, and he said these are in development now.  Soros said, The ultimate asset bubble is gold.

 
Soros & Prechter: A Gold Bubble Ripe To Burst? (24/7 Wall Street)