You have some folks that aren't gold bugs saying the opposite. Did you read PTJ recent report? Also, if it is a speculative bubble, then we aren't to the parabolic stage yet, based on inflation-adjusted 1980 parabolic high.
This is all just noise and it doesn't make anybody any smarter... Don't play into these media whore's BS. What you see is definately not what you get.
people say that gold has been money for "thousands of years". so what ? sticks used to be money too. they are no longer. deal with it kooks. the only way gold does not end in an oil bubble like collapse is if it gets revalued or governments revert to a gold standard of some sort. the chance of this happening is not astronomically slim but IMPOSSIBLE. for this to happen you would need informed, intelligent, free thinking libertarians to make up much of the population. today we have hardcore braindead statists who literally worship government. the noose of government is getting tighter and tighter. hell, soon physical fiat will be a libertarian dream when we have a cashless society. short of an anarcho-capitalist revolution there is no place in our bleak future for gold. if society "recovers" then you are left holding a shiny rock for no particular reason, if it totally collapses then you have a shiny rock that is so worthless that you can't even wipe your ass with it like you can with physical fiat.
Inflation adjusted all time high for Gold is at $2358 an ounce. http://www.ritholtz.com/blog/wp-content/uploads/2009/10/gold-REAL-dollars.gif I don't see any bubble in Gold prices but I do see $1250 an ounce by end of year.
I don't see any statistics posted to prove your point, so I'll just assume it is more "precious-metal bashing broker type talk". As worthless as the $5,000 predictions from the gold bugs.
there is nothing intrinsically wrong with fiat currency. it could be used to develop a far more efficient society than a gold mongering one. how does it benefit society to devote any percentage of it's work force to gold discovery (any more than for technological purposes)?
I'm not a gold bug - gold makes no more sense than any other commodity money. Actually, a sheep-backed note would be better in the event of true economic trouble since sheep would be truly useful in such a scenario. Under more normal conditions fiat money is better than either. That said, I have two thoughts: 1) I see the fundamentals case for $600 gold. As the fed raises rates (and they will) bonds becomes more attractive. As growth picks up, equities become more attractive. All the money to bid those markets up has to come from somewhere, and that somewhere is probably largely speculative commodities positions including gold. Some will also come from idle dollars. I think the net result has to be substantial gold selling in the first half of the next economic cycle. 2) The opposite of "never catch a falling knife" applies here. Gold is making new highs, and is trying to tell us something. Eventually I believe the fundamentals will move in line with my view, but I have no idea where we might pass through on the way there. Gold $1500 would not surprise me. So at some point I want to be short. But I want to be short when it's going down.
I agree. I see gold going as high as 1600 before rolling over. once the top is put in it will be remarkably similar to last year's oil collapse. day in and day out consistent selling. as far as the best type of currency I thik that should be left for the market to decide. abolish legal tender laws and we will have competing currencies.
Quote from fullblotter: people say that gold has been money for "thousands of years". so what ? sticks used to be money too. they are no longer. deal with it kooks. My oh my. Some people here are dense. Gold has been used as money for thousands of years. THE WHOLE TIME. It still is. Get it? Do central banks hoard sticks? I don't understand how some people don't get it. Gold will go up in value relative to paper currency when the supply of paper currency rises faster than gold. Its simple. Oh, you have to be a gold bug to understand this?