As the table I shows, as of 14 September 2011, the over-valuation of gold – what we can also call gold bubble – with reference to 7 competing asset classes varied from 84% against highly correlated metal prices proxied by LMEX, 90% against WTI crude, 123% against US Treasuries proxied by JP Morgan index, and roughly 250–300% against Credit Default Swap index, Dow Jones, the US dollar index DXY and the US home price Case-Shiller index.
(To detect an asset bubble (gold in the present case), fair value/price of gold with reference to competing asset classes like US dollar, US stock market, crude oil, the US treasuries, credit risk, base metals, and US house prices, proxied, respectively, by the DXY (Euro, Pound Sterling, Japanese Yen, Swiss Franc, Canadian Dollar and Swedish Krona), the Dow Jones Industrial Average (DJIA), WTI spot, J.P. Morgan Bond Index, CDX IG, a CDS Index for Investment Grade US bonds, London Metal Exchange (LMEX) (nickel, tin, aluminium, copper, zinc and lead) and S&P CASE-SHILLER index, has been computed.