You don't own gold, not one of you owns gold.

The economics of Gold.
Step 1. People buy gold or invest in gold.
Step 2. Gold reaches a peak.
Step 3. Gold investors realize gold has reached a peak
Step 4. Gold investors get on TV and say, "There's never been a better time to invest in gold!"
Step 5. Suckers all over the country jump on board driving the price to new heights.
Step 6. New suckers become rare.
Step 7. Desperate gold investors get onto ET and make outrageous claims designed to sow fear into traders in a lame attempt to get more suckers to buy gold.
Step 8. Gold investors bail.
Step 9. Suckers lose.
Step 10. Repeat.
 
Quote from J.Joseph:

The economics of Gold.
Step 1. People buy gold or invest in gold.
Step 2. Gold reaches a peak.
Step 3. Gold investors realize gold has reached a peak
Step 4. Gold investors get on TV and say, "There's never been a better time to invest in gold!"
Step 5. Suckers all over the country jump on board driving the price to new heights.
Step 6. New suckers become rare.
Step 7. Desperate gold investors get onto ET and make outrageous claims designed to sow fear into traders in a lame attempt to get more suckers to buy gold.
Step 8. Gold investors bail.
Step 9. Suckers lose.
Step 10. Repeat.
More...

People may be hocking gold jewelry and such, but we're nowhere near a bubble per your Steps 2-5. There were a lot more Joe and Jane Sixpacks jumping into tech stocks in the late 90s or playing the housing bubble (flipping, just flipping their primary residence, risk mortgages, etc.) than are jumping into gold right now.

It's funny that those who denied the housing bubble to the bitter end were the first to call a gold bubble (about 5 years ago)...
 
So the trick is to play with bubbles?

Dot com bubble, Housing bubble, gold bubble...

Ride them until you see a huge influx of suckers then sell...

Man, I thought I was done with bubbles at age 8 when I ran out of bubble water!
 
The last 7 year rally in gold is really caused by the creation of the GLD. There was an article in the WSJ or Bloomberg about how a gold producers consortium created the GLD to make gold accessible to retail investors as a strategy to increase the price. It's been wildly successful and something like 80% of the float in GLD resides in retail accounts.

This doesn't mean it's a bubble, but a lot of the price inflation has been due to a broader investor base being able to access it.

"Joe Sixpack" might be buying it now. But he was also buying it five years ago.
 
Quote from J.Joseph:

The economics of Gold.
Step 1. People buy gold or invest in gold.
Step 2. Gold reaches a peak.
Step 3. Gold investors realize gold has reached a peak
Step 4. Gold investors get on TV and say, "There's never been a better time to invest in gold!"
Step 5. Suckers all over the country jump on board driving the price to new heights.
Step 6. New suckers become rare.
Step 7. Desperate gold investors get onto ET and make outrageous claims designed to sow fear into traders in a lame attempt to get more suckers to buy gold.
Step 8. Gold investors bail.
More...
===============
J.Joeseph;
Interesting pattern; 1-8 ...........................................

Its late, late on number 8.Strict long trend followers may wait late;
may wait late again.Many uptrend/ trend followers ignore red sell volume,
but its increasing for past one year, on GLD:D
 
Quote from Lucrum:

That's more or less what you said about bearice.
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No it's not. I liked Bearice's posts but I thought it was sometimes a bit confusing and moving from one issue to another.
 
gold is nothing.

you want treasure?

bet the shrunken heads of bankers would fetch a lot more bread than an ounce of gold.
 
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