Why gold is not in bubble territory

I am re-posting this chart by Sprott Asset Management.  Gold is still vastly under-owned by institutional investors.  Gold and gold-related assets represent less than 1% of global total assets under management.  Hence, the price of gold is nowhere near bubble levels.

In fact, given the 12-year bull market in gold, the lack of participation by the "smart money" is stunning. Gold has appreciated more than 7-fold since its 1999 and 2001 troughs of approximately $250/oz., yet the media, retail and institutional investors have completely missed the relentless run up in prices.  Can one imagine what the headlines would look like if the Dow Jones Industrial Average had appreciated seven-fold in the last decade?  Everyone and his brother at cocktail parties would declare themselves experts on the bull market in equities.

Meanwhile, gold and silver have made their "stealth" bull runs with nary a peep.  Indeed, the only headlines about gold are forecasts of a bubble bursting.  The same pundits who were blindsided by the bubbles in tech stocks and subprime real estate are the same ones who are self-appointed experts on gold bubbles.  They're also the same ones who have been calling a top in gold over the last decade.  Do your portfolio a favor and ignore these so-called "experts."

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Disclosure:  long precious metals and mining shares.