Sorry if I didnt make myself a little more clear. Seeing gold at $400,000 was not because I thought Gold was going to be in a speculative bubble, but because i thought of hyperinflation. The same way gold jumped to a 100 million per oz in zimbabwe when it was still 600$ per oz here. I dont really think gold would ever have 400,000$ worth of todays buying power. I forget that some of you are play by play chess players and dont think 3 or 4 moves ahead into the realm of other possibilities, which i shouldnt be surprised by as this is a trading forum and most of you react to what the market does and dont think ahead. But this is why in the end you always lose to check mate.
This is just a random thought, but could the Dow go to..... 9823749832748932748932473894723 ?? LOL. i guess we could easily have crazy inflation, gold looks like it wants to break out higher, the dollar should be worthless, and sure that could mean insane levels on gold. 400,000? 400-bagger. hmmmm... i wonder if it could go to 10,000, then do some weird re-pricing, back to 1,000, then back to 10,000.....hmmmm... nah. i wonder if this means the US dollar at zero, replaced with another currency. i think we would have nuclear war first and as gold was going to 400,000...the earth would explode. lol
Gold has stood the test of time. It obviously won't grow in value like some stocks did during the tech boom, but it also won't lose 90% of its value in a year or two. Gold is a conservative investment that is a perfect hedge against any economic bubble or other macro-economic crises.
With that price looks like the end of the world. May I ask you a question. Let say you have a debt that equal to the amount of your one year income, can you still manage or is that the end of the world for you? I bet not. The debt that the US is holding equal to one year GDP.