Good, the more people who miss the point, the better. speculative bubbles are not supply/demand driven, the theory is outdated when applied to this situation. Today, single individuals control what use to to take 1000's of speculators, end users, etc. im not talking about jokers making million dollar bets to pump up newsletters written for the sheep, im talking about guys betting millions an hour, guys who can arb physicals against futures, the people who matter in this game. LONGS, either get your head out of the sand and stop looking in the wrong places for guidance, or prepare to meet thy maker as gold begin the stumble into the abyss of a near 50% retracement.....
when will the "whales" step up to the plate again ? www.bloomberg.com/apps/news?pid=20601012&sid=a8v8L5FqgOFE&refer=commodities -Still, investment demand has dropped for the metal as the price has failed to keep pace with gains in energy costs. Investment in the StreeTracks Gold Trust dropped to 591.2 metric tons yesterday, marking the first time the fund has fallen below 600 tons since November. The trust reached a record 663.8 tons on March 17. - ( note ... this does not matter to me a "stringray" in the pm waters )
Perceived supply and demand. For whatever reason the big traders you refer to move markets, the other side of those trades are based on perceptions or misperceptions of supply and demand, whether such perceptions are based on research, guesses, second-guesses or whatever.
you were alive during tulip mania, no? add the perception of value, honed over 1000's of misunderstood years, and whatcha got? gold bubble circa 2008. i like your "perceived" supply and demand observation---- yes, very accurate. surf
Well Done Surf ! Will the price of gold be going down next 5 years ? Oh, absolutely. Can it go above $1000 before then ? Oh, absolutely. It's gonna be crazy....we are in UNPRECEDENTED economic times.
If you want to talk about "bubbles", let's talk about the value of paper. What's it worth? The paper money you are measuring that gold in will inherently revert to the value of the paper its printed on as time goes by, but the gold will still be coveted. How many times does history need to repeat for you to see it coming?
Once this temporary commodity bubble bursts, we're in for wicked bout of DEFLATION.....not good for gold prices. And yes, your house will continue to be worth less and less over time. No one in our neighborhood can sells theirs, so they're trying to rent them. Problem is: everyone is doing it.
Reminds me of an exchange I had a year or so back with an Et'er named Mad Hungarian: Pa(b)st Prime Registered: Oct 2006 Posts: 2414 02-07-07 01:46 PM -------------------------------------------------------------------------------- Quote from MadBulgarian: You remind me of caveman that is purchasing caves thinking that people will always need a place to live and your "hard assets" are golden investments. I'd rather "cast my lot" at human ingenuity -------------------------------------------------------------------------------- Pabst: Those caves are still there. What's the worth of the caveman's first currency? ------------------------------------------------------------------------------- Nice trade Surf-nice indeed-but I don't see gold as a 'bubble". Not to say it can't break another $200. In the Big Pic-noise. Global government debt levels are just begging for currency collapse. Aging populations in developed nations along with corresponding underfunded future entitlements will cause massive defaults on anything resembling constant dollars. (along with the Yen, Pound ect.) As a society we will learn to walk away from debt. Gold is an uber-currency. I can't ignore the possibility that in the macro Gold isn't still terribly cheap.