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08/22/2011

Is Gold the next Bubble?

The price of gold is approaching 1900 USD per ounce. That is amazing for a material that does not produce any wealth except for those that trade it.   Gold is a commodity that is used in a few industrial processes, does a few neat things like coats the helmets of astronauts and is beautiful adorning a women. Historically, it has been a haven for troubled times and hedge against inflation. 

 At these price, an investor has to ask, how high can it go and who will buy it from me?  (like the house you paid too much for) 

I saw the internet bubble too late. I got the housing bubble about right. The gold bubble could be the next one and when it corrects, it will do so at a rapid rate and give no mercy. In any event the rise in gold at such a rapid rate is bad news, bad news. If the price breaks, considerable money will be lost. If it contineus up, it indicates economic weakness. 

Be very wary! 

Posted at 02:08 PM in Budget and the Economy, Current Affairs |

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Comments

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Supra Shoes

If you wish to be the best man, you must suffer the bitterest of the bitter.

Posted by: Supra Shoes | 11/02/2011 at 10:13 AM

utah diamonds

That would be very possible. The jewelry business never goes down.

Posted by: utah diamonds | 02/08/2012 at 08:50 AM

Jari Kaitainen

Gold prices is always increasing and i never heard it decrease and your right about it.In Finland country many of people use to do change gold for cash which some of them are waiting for time to increase before they going to change it in cash which is a very smart move.

Posted by: Jari Kaitainen | 11/23/2012 at 04:07 AM

moncle 2013

Both sides should do away with this nonsense.

Posted by: moncle 2013 | 12/20/2012 at 12:54 PM

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