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A lot of the same hallmarks of when they were pushing the dot-coms or before that the easy money flipping real estate and so forth.
There were some pretty obvious flaws with those run-ups. The dot com bubble was foolish because most of those businesses had no proper business model or even a source of revenue. The real estate market went sky high for many stupid reasons, including access to easy credit, deregulation and government manipulation. It was easy to spot because RE prices went well above the 2.5X median income standard, yet people still had buy if they wanted to own the place they live in. Those were easy to identify as bubbles by examining the fundamentals. Today, we have our government printing money out of thin air. That's reason enough for me to consider gold at least a worthwhile investment to consider, at least to hedge against the obvious risks.
There will always be profiteers looking to push along a run up, whether it's a legitimate run up or something lacking in the fundamentals department. That doesn't mean something should be avoided. It's up to the investor to do the homework to see if they agree with suggested price point potentials.
Than how do you expect the value of your asset to rise?
When people need it very badly. Those people will more than likely make themselves known. I should not have said big secret, but just dont push whatever you have unto everyone. If demand go up, price will rise for everyone.
There were some pretty obvious flaws with those run-ups. The dot com bubble was foolish because most of those businesses had no proper business model or even a source of revenue. The real estate market went sky high for many stupid reasons, including access to easy credit, deregulation and government manipulation. It was easy to spot because RE prices went well above the 2.5X median income standard, yet people still had buy if they wanted to own the place they live in. Those were easy to identify as bubbles by examining the fundamentals. Today, we have our government printing money out of thin air. That's reason enough for me to consider gold at least a worthwhile investment to consider, at least to hedge against the obvious risks.
There will always be profiteers looking to push along a run up, whether it's a legitimate run up or something lacking in the fundamentals department. That doesn't mean something should be avoided. It's up to the investor to do the homework to see if they agree with suggested price point potentials.
I alluded to much of what you have to say re: Gold and agree with you.
My comments are also directed at people looking to hop in and make a nice short-term return as opposed to those that are purchasing as part of portfolio strategy.
Keep in mind that in both the dotcom and housing collapses....supply side adjustments to profit off the frenzy exacerbated the degree of the correction.
I see "mail us your gold" pouches etc etc. all over the TV and print ads...and then you have the mines operating full-bore and so forth. So, holding ALL ELSE equal in terms of US monetary actions and speculative demand there will likely be a supply driven correction. If you get a combination of the above then the correction could be substantial.
Smarter investment would be in silver, me thinks...
Or platinum... Not as widely publicized. Not as volatile. Won't go up as fast, but won't go down either.
Smarter investment would be in silver, me thinks...
Or platinum... Not as widely publicized. Not as volatile. Won't go up as fast, but won't go down either.
Agreed. I am glad to be invested in silver as well.
I read somewhere, gold has always been able to buy a man a good, new suite (1 oz of gold). Something like that.
Look at how much gold has gone up since the 30's, it was $35 an ounce for a long time. And got up to $1,900, thats like a 50x move in 40 years. Thats with no dividends.
The dow was at 1,000 in the late 60's, its at 12,000 today. But gold was at $35, and now its at $1,600.
-All these studies about stocks always outperforming, how do they explain the performance of gold?
I think a lot of the current investment thinking and studies are biased in favor of stable governments. But thats not always the case as we're finding out now (greece, eu, etc). I think the models that have looked at gold have been relatively limited.
I think gold has gotten too much publicity, there are better supply and demand plays like silver. I dont think its worthless the way a dot com is. Its not going to go to zero, maybe down to $1,200. China only has 5% of its reserves in gold, or some low figure. Theres going to be a floor of at least $1,000-1,200 for a long time IMO.
I bought and am holding gold currency. Being a coin collector is a nice bonus. I think gold prices will be increasing somewhat steadily this year.
What kind of markup do you experience over the spot price? I have the opportunity buy 1/4 oz. coins at a 10% markup, 1/2 oz. coins at 8%, and 1 oz. coins at 6%. Are those okay, or outside normal?
I read somewhere, gold has always been able to buy a man a good, new suite (1 oz of gold). Something like that.
Look at how much gold has gone up since the 30's, it was $35 an ounce for a long time. And got up to $1,900, thats like a 50x move in 40 years. Thats with no dividends.
The dow was at 1,000 in the late 60's, its at 12,000 today. But gold was at $35, and now its at $1,600.
I am not sure that those two sets of numbers are comparable since the gold price was FIXED at $35 for so long. If it had been able to fluctuate, then the comparison would be valid.
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