Who believes there isn't a Gold bubble right now?
- Thread starter LodeRunner
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LodeRunner:
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Loderunner rocked. But I was a fan of earlier games, Space Invaders, Asteroids, Zaxxon (3D man!), Tempest (My all time fav).
I think a fair number of investors are less interested in appreciation as they are in preservation. Few trust the Super Fed. I would not call it a bubble in the true sense of the word, we do not climb because we expect to climb.
OP is a troll. His only satisfaction comes from trying to get a rise out of people.
I think they will break new highs. Idiots ran into bonds. Wrong answer. They are wrong is my answer to your question. Maybe I'm wrong, but I see your point, and I see them making a huge mistake. To be exploited soon enough. The market is not showing what should happen. It may be a function of the old rules still apply during liquidation. Does anyone take copper as payment? Your point is a good one. Look at wheat today though 3% If they aren't selling, what are buying? But being forced to sell and hand over paper afterwords... it won't show yet. Just my opinion.
I believe there isn't a bubble in gold.
In the first post, the OP ignores monetary history. There are reasons that gold was used as money throughout history.
It's the history and relationship of the dollar and other currencies abandoning the gold standard that differentiates it from other more industrial commodity metals. Historically gold is not just a commodity but also serves as money. Shit, does that really need explanation? lol
So gold more or less stays the same as all the diluted paper shit money falls by its waysides. That is not a bubble, that is real money vs. shit money.
Recently the only "bubble" in gold is when it gets overbought in the short term and makes a pullback, bubble over.
Are there really any bubbles left right now that haven't already deflated significantly? Oh...the fiat monetary system, now that's a bubble.
In the first post, the OP ignores monetary history. There are reasons that gold was used as money throughout history.
It's the history and relationship of the dollar and other currencies abandoning the gold standard that differentiates it from other more industrial commodity metals. Historically gold is not just a commodity but also serves as money. Shit, does that really need explanation? lol
So gold more or less stays the same as all the diluted paper shit money falls by its waysides. That is not a bubble, that is real money vs. shit money.
Recently the only "bubble" in gold is when it gets overbought in the short term and makes a pullback, bubble over.
Are there really any bubbles left right now that haven't already deflated significantly? Oh...the fiat monetary system, now that's a bubble.
Not since '82. But as long as people accept fiat currency, is that relevant? You keep your money fully invested in copper or some other commodity X, and when you want to buy something you cash out into dollars or euros or whatever.
Back in the days before the internet, bullion coins (in only 2 or three designated 'precious' metals) made sense. Now, they only make sense if you expect internet commerce, along with the rest of western civilization, to disappear.
Assuming that actually happens, I think the value of gold must eventually drop very sharply in favor of useful stuff: steel, aluminum, copper, explosives, food, etc.
Assuming it doesn't happen, then all commodities are equally effective inflation hedges... and the gold bubble (as compared to other commodities, not necessarily as compared to fiat currencies) must burst.
Electronic liquidity means gold isn't special any more. The question is, how long will it take the markets to figure this out...
EDIT: Regarding the 'history of gold' stuff.... isn't that just a horribly misleading, extremely lagging indicator? "X was valuable in the past, therefore it will be valuable again" is the first stage of every investor's worst nightmare since the beginning of time. (Or the beginning of modern capitalism, whichever came first.) I see no reason to think that gold's special place was the result of anything but centuries of severe illiquidity, only properly alleviated in the past two decades.