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This is really a moronic argument on your part, your using a very short term rise/drop to make a grand statement.
If gold spikes up tomorrow would you jump on the forums and say the dollar is doomed?
It's akin to saying it was warmer today than yesterday so global warming must be true.
This is really a moronic argument on your part, your using a very short term rise/drop to make a grand statement.
If gold spikes up tomorrow would you jump on the forums and say the dollar is doomed?
It's akin to saying it was warmer today than yesterday so global warming must be true.
bill
The difference is - gold was driven up by fear that inflation would soar the the dollar possibly collapse, and NEITHER of those has happened - and with the dollar soaring and the deficit falling it's becoming apparent that neither of those things are LIKELY to happen - eroding much of the rationale for owning gold. Now, after 2 years of gradually (and not so gradually) dropping prices, it seems that the big investors in gold have started "heading for the exits". Gold was a bubble, just as real estate was a bubble and tech stocks were once a bubble - and that gold bubble is popping. The overall trend for gold is going to be DOWN.
This article sums it up nicely:
"...The last few years have seen a major ideological battle take place.
On one hand you have established economists, who believe the government has tools at its disposal to address a crisis. These tools include deficit spending and a violent expansion of the Fed's balance sheet.
Conversely you have critics who slam the arrogance of economists and central planners, and who have predicted that all of this economic acrobatics would result in an economic collapse, hyperinflation, and an explosion in the price of gold. Gold is important to their worldview, because it represents a quasi-money that's not tied to any government or central bank.
Investing in gold is a rejection of government money and finance. Money flowing into gold-related assets represents a belief that rocks (however shiny they are) are a better place to invest than human endeavors (like stocks)..."
If gold had stayed money where would Buffet be today?
Just as rich as he is today (he's currently #4 on the ENTIRE PLANET).
He didn't get there by accident - he's a SMART guy (WAYYYYYYY smarter than the gold bugs on THIS site).
If gold had stayed money where would Buffet be today?
Perhaps not as rich as the economy wouldn't have been as good. If we were on the gold standard, we would have been plagued by rapid rises in prices followed by rapid decreases in prices with no way to prime the economy in bad times nor cool it in boom times.
Where were all of the gold haters as the per ounce price of the metal went from $300 to $1800? Hiding?
I was RIGHT HERE - saying it was a bubble. I've said NUMEROUS TIMES over the last 4-5 years that gold would collapse when it became clear the dollar WOULDN'T collapse - and that's EXACTLY what's going on with gold.
And if that was a bubble then why were VERY few people talking about gold during the mid-2000s?
PLENTY of folks were "talking about gold" once the bubble began building. Before that, there was not a lot of reason to talk about - after all it had sat with the price virtually flat, for nearly 25 years.
During the Internet and Housing Bubbles you couldn't get away from talking about Internet stocks or home prices.
Couldn't get away from people talking about GOLD during it's bubble years EITHER.
Nobody except gold dealers and gold investors were talking about gold in the 2000s.
Gold prices have corrected but have NOT crashed. (A quick look at any gold price chart can tell you that).
What? Were you living under a rock from 2008 to 2010? It wasn't JUST INVESTORS and DEALERS talking about gold - it was ALL OVER the NEWS ALL OVER THE WORLD:
There are THOUSANDS of news stories about gold during the years you mention - THOUSANDS.
Gold was not and is not in a "bubble".
Of course it is/was. Definition of "bubble":
A surge in the market caused by speculationregarding a commodity which results in an explosion of activity in that market segment causing vastly overinflated prices. The prices are not sustainable and the bubble is usually followed by a crash in prices in the affected sector.
Why do central banks hold gold if it is just a worthless metal?
Why do Indians and Chinese HOARD gold if it is worthless? (Their cultures are a SLIGHT bit older and wiser than American culture)
WHO said it was "worthless"?
What makes FRNs have "value" while gold can't possible have "value".
WHO said it didn't have value?
Do you trust politically controlled paper bills over historically valued stores of wealth and why?
Heck YEAH!
Why? Because I've seen this "gold fever" nonsense unfold before. It didn't end well THEN, and it's not ending well THIS TIME either.
Ken
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