Posted on 08/22/2011 6:30:33 PM PDT by blam
GOLD $1900
Gus Lubin
Aug. 22, 2011, 5:16 PM
Update: Gold hit the new record at $1,900.75.
Now read why Wells Fargo say this stunning rise does not look like a bubble.
(Excerpt) Read more at businessinsider.com ...
Should I sell....buy some more....?
Jump up and down screaming "DONT PANIC"
Or it could be supply is short relative to demand...
The Tulip Bubble was caused something a little different then what is going on here. This Gold move is because we are debasing a currency. Tulips had nothing to do with the debasing of a currency.
Keep dancing while Rome burns!
Gold equals tulip bulbs?
Absolutely, read up on tulip mania in “Extraordinary
popular delusions and the madness of crowds”.
Quite interesting on many accounts, talks about the
South Sea Bubble, bank scams and all sorts of wierd
happenings.
just when i’ve spent my last piaster
“The Dutch have seen this before with Tulip Bulbs.”
And that ain’t bad if one OWNS a shipload of tulip bulbs... (aka GOLD, Baby!)
I made a SWEET profit this week just a’ sittin’ on my @ss.
Mama Like! :)
I think that gold has a slightly better history than tulip bulbs as a store of wealth across times of turmoil.
Just slightly.
Waiting for it to go down to what it’s worth, $35 per ounce.
Gold has made new highs in all currencies not just the US$. The world's banking system is at risk...oh well.
Yes we are in a bubble, but the bubble is in U.S.Treasuries.
You can’t eat Federal Reserve Notes
Can you equate gold with the housing bubble ? I mean, at one time in 2000 you could buy a house real cheap, and if you did and sold before the crash you could have made a small fortune, but if you bought the house in 2007, well you made a bsd investement. Now if you bought gold in 2000, you would look pretty good right now, but if you buy gold now, will you in the future ? The same argument seems to be in place, buy now cause the price will continue to go up. But if things change in 2012, the dollar gets stronger, won’t gold go back down ? And then what ? Just wondering ? Cause I don’t trust anyone anymore.
Demand for what reason?
Are they making a whole lot more jewelry lately?
Is some country starting to mint gold coins?
More electronics that need more gold?
None of the above.
You are trying to explain this using monetary theory. But economic models around the world are crashing and burning as we speak.
I’m talking psychology. Not economics.
I very much agree that it is not economic. And not industrial for that matter.
Simply psychological demand.
People are buying due to fear of the dollar, the more fear the more demand and therefore the more it goes up in price because supply can’t fill it.
I think gold is a bubble. A positive feedback system driven by fear.
One can argue whether the fear is justified or not. But gold is not the answer to that fear that so many seem to think it is.
When the masses start saying “it can’t go down” lookout below...
What is the answer? More stocks? Bonds? T-bills? Tulips? Credit-default swaps?
None of those.
In fact the more of those that they make, the higher gold will go.
What most people don’t realize is that the ONLY reason we have not seen hyperinflation is because of exactly those negotiable instruments described above.
Had those not been invented - made to appear with a wave of a magic wand or something - then the alternative would have been to actually PRINT the dollars those items represent.
If there is a bubble, it’s in equities that can be made out of thin air.
The whole hedge fund thing is an illusion - little more than 250 trillion dollars or so of BETS! Interest rate derivative BETS!!
Is that real money?
I guess it is if you believe it is. (I mean “you” generally, not you particularly, I’m not accusing or attacking you in any way).
regards,
djf
This is just my take, and I’m not a banker or stockbroker or anything like that, I’m a programmer.
Nothing was there to stop the sovereign governments and the financial houses from creating money and instruments FAR BEYOND what had any meaning.
What I mean is this: A government could print a note and say that note is worth 600 gazillion yabba dabba dillion if it wanted to. It could print notes that exceed the world GNP, even ten times the world GNP’s whatever...
In a sense, the rating agencies DID THAT with the real estate bubble. Here’s some rambler in LA that sits on 1/5th of an acre of land and it needs a complete re-do but it’s WORTH 750K BECAUSE WE SAY SO.
So what does it mean when the numbers being banteed around represent amounts that are completely unrealistic or immeasurable in a day to day meaning sense? When the numbers go beyond anything in terms of understanding or ability to pay back?
If there is a bubble, THAT’S THE BUBBLE!! And it is GROSS FINANCIAL MISMANAGEMENT, if not OUTRIGHT FRAUD!
Gold, in this context, represents a return to something real. A return to a place where people are at least all talking the same language and measurements.
Just my two cents, anyways...
This is not a story about gold or silver, it’s a story about fiat currencies worldwide. People everywhere recognize that the governments, all of them, fundamentally have no idea what to do or simply choose not to do what’s necessary. It’s true that one can’t eat gold but when the SHTF those holding food and other supplies as well as gold, silver and lead and brass will be in a better position.
juma, do you really think the president and Congress are going to balance the budget and stop printing paper money for the next 10 years?
You can’t eat Federal Reserve Notes ... but it makes for a nice mulch in a pinch.
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