Is this the start of a crash - or a great buying opportunity?

Stock markets across the world have plunged in recent weeks, led by commodities. Investors have been thrown into a panic by Federal Reserve chief Ben Bernanke's comments on US inflation. But are the falls justified, asks Brian Durrant in the Fleet Street Letter - or is this a great buying opportunity?

Have we just witnessed the start of a crash or a healthy correction? As the world's stock markets, commodity prices and property continued to climb higher last month, Warren Buffett, the legendary US investor, said at Berkshire Hathaway's annual meeting that 'like most trends, at the beginning it's driven by fundamentals [but] at some point speculation takes over.'

A prime example of speculators getting onto the bandwagon was the rally in the gold price from $600/oz to over $700/oz in just over three weeks. The background fundamentals became more supportive over the period: US foreign policy was unravelling, the spectre of inflation was raising its ugly head, oil prices were firm and the dollar was falling. But the speed and scale of bullion's rise suggests a prominent helping hand from speculators.

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Brian has contributed to MoneyWeek with his expertise in investment strategy, for example how to quadruple your dividend income and how to navigate through the stock market in the 2008 financial crisis. He’s also touched on personal finance such as the housing market and the UK economy.