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Old 03-12-2013, 05:00 PM
 
Location: On the Edge of the Fringe
4,664 posts, read 3,747,430 times
Reputation: 3930

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IS THERE A GOLD BUBBLE!?!?!?!

I ask this because
one, I think there is but am not sure
and TWO I want to know from those who are buying/trading it.

I do not buy gold. My old lady is allergic to it, so all of our jewelry is silver or platinum . I do not buy gold coins as investments, and I do not buy gold shares or bullion or anything like that.
BUT I keep hearing over and over investors say "I am getting into gold"

My concern is that it is overvalued, and like all items, will cycle around to being worth a lot less, maybe dropping around $500 an ounce two days after I sink money into it.

I do not think it will stay up, but then again I DO NOT KNOW which is why I am asking you guys (and ladies) to please help me out with this one.
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Old 03-12-2013, 08:00 PM
 
Location: Denver
3,009 posts, read 2,415,103 times
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I don't invest in gold because it is nothing more than an overpriced currency. Many people buy it as a hedge against inflation, but to me, if you want to hedge against inflation, buy assets that are useful, not gold which is useless. Why buy something which has no true value, destroys the environment with its extraction in mining, and costs much more than paper currency, which serves the same purpose.

I think just the fact that there is so many people advertising for you to buy gold is rationale enough not to buy it. They advertise because they can make money off of your investment in gold.
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Old 03-13-2013, 07:28 AM
 
Location: On the Edge of the Fringe
4,664 posts, read 3,747,430 times
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What about the $50 drop in gold price over the past few weeks?

My fear is it would be $500 with the run of luck I have had lately

I also preach the whole "Buy low sell high" CW and gold does not seem to fit that bill.
I think gold is overvalued and I think that gold prices will adjust down, as you said Mr Phil it is overpriced currency.
And as I mentioned, we do not wear it, so we buy platinum and silver jewelry for that rare occasion that we do dress up

Anyway my safe if full of presidential dollar coins that are enough of a testament to my occasional dorkiness as the old lady puts it. But no gold presidential wives coins.
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Old 03-13-2013, 07:33 AM
 
16,438 posts, read 18,558,236 times
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Conventional wisdom among gold bugs is "buy the dips". BTW I've never heard on anyone being allergic to gold before! It's one of the most inert metals. Maybe she's allergic to something alloyed with less than 24k gold, like nickel.
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Old 03-15-2013, 07:03 PM
 
Location: Heartland Florida
9,324 posts, read 23,281,007 times
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Gold outperforms the dollar on average. As long as Bernanke keeps printing gold is not in a bubble. If the fed stops creating money from nothing (which they can never do) then expect a massive gold price crash. As for me, I would rather invest in platinum.
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Old 03-17-2013, 09:53 AM
 
Location: Denver
3,009 posts, read 2,415,103 times
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Quote:
Originally Posted by tallrick View Post
As for me, I would rather invest in platinum.
Why platinum? why not copper or tin or tungsten?
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Old 03-17-2013, 12:14 PM
 
Location: Someplace Wonderful
5,170 posts, read 3,738,545 times
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Quote:
Originally Posted by Bideshi View Post
Conventional wisdom among gold bugs is "buy the dips". BTW I've never heard on anyone being allergic to gold before! It's one of the most inert metals. Maybe she's allergic to something alloyed with less than 24k gold, like nickel.
If you ingest gold dust, for example, you can die of heavy metal poisoning, same as with iron, copper, and silver.
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Old 03-17-2013, 12:25 PM
 
Location: Someplace Wonderful
5,170 posts, read 3,738,545 times
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Quote:
Originally Posted by tallrick View Post
Gold outperforms the dollar on average. As long as Bernanke keeps printing gold is not in a bubble. If the fed stops creating money from nothing (which they can never do) then expect a massive gold price crash. As for me, I would rather invest in platinum.
Every time I've researched gold versus the dollar, I come up with gold generally tracking the dollar. For example, tracking from gold's 1980 high through a year or two ago, the price of gold adjusted for inflation worked out to more or less the value of the dollar.

You are correct that this constant inflating of the dollar by the Fed, something done specifically to prop up asset prices, but which has the nasty side effect of increasing the prices of our imports. EG oil.

What is it they say? The chickens always come home to roost? Sooner or later all this cheap money will come back to haunt us. Ever increasing trillions in debt will come back to haunt us.

Thanks for the post.

PS why not invest in coffee, sugar, and salt?
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Old 03-17-2013, 02:00 PM
 
157 posts, read 136,259 times
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because coffee and sugar spoil, and can be done without, and salt is so readily available (and each person needs SO little of it) that there's very litlte money in it. I got a news flash for you. Gold was $135 an oz, in 1970, today it's $1700+ per oz. do you REALLY THINK that we are CLEARING 12x as much as we were back in 1970? Decent factory jobs cleared $5 an hour back then! So WHO is clearing $60 an hour tody, doing simple assembly work, hmm? If you "think" that gold just "tracks' the US dollar, you are VERY poorly advised. :-) back then, gas was 40c a gallon, so that oz of gold would buy 330 gallons of gas. today, even with gas prices being what they are, an oz of gold will buy almost 500 gallons of gas. So you just go ahead and don't buy gold, that helps keeps the price down, so I can buy more of it.
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Old 03-17-2013, 02:34 PM
 
65,000 posts, read 66,481,576 times
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You better look again,gold was 35.00 an ounce back in 1970.

How about the dollar fell from being worth 1/35 of an ounce of gold to being worth 1/1550th of an ounce of gold.

Last edited by mathjak107; 03-17-2013 at 02:48 PM..
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