Quote:
Originally Posted by HappyTexan
I'd agree with paper gold. Be careful though declaring commodities as bubbles..there is the paper trading that can bring on bubbles and then there is the physical commodity which may be in short supply. Understand the difference.
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I understand the difference and I did not say either was definitly a bubble, but I would be hesitant in investing in anything that
everyone says is going up in price. That is the key. The key with these bubbles is to be the first one in...example Gold. Even a commodity such as gold which is in short supply. The early investors buy a lot and it at market price...then EVERYONE heres about it and buy at inflated prices, and then the original investors dump and push down the prices. The last on board lose! The early investors buy a lot and they want EVERYONE to hear about the great gains because they can dump make a profit and then buy again when it drops back down. The average consumer is normally the person who enters late.