Go Back   This Blue Marble, a Global Current Events Discussion Forum > Main Floor > Economy

Economy Economy discussion forum. Discuss the politics and effects of the general economy and global economic collapse here. Please keep all politics out of the Finance and Investment subforum.

Reply
 
Thread Tools Search this Thread Display Modes
Old 10-25-2010, 04:01 PM   #1
Potemkin
Omne ignotum pro magnifico
 
Potemkin's Avatar
 
Join Date: Aug 2008
Posts: 23,387
Blog Entries: 3
Thanks: 70
Thanked 1,670 Times in 1,027 Posts
Default Gold Is In A Bubble That Is Going To Burst

11 Signs That Gold Is In A Bubble That Is Going To Burst
James Altucher | Oct. 25, 2010, 10:14 AM | 167,214 | comment 84

James Altucher

I first wrote about gold in early July at WSJ.com. I took a lot of heat then but the jury is still out.

In fact, since July 9, stocks and gold have performed almost exactly the same.

But with stocks trading at record low multiples over earnings (versus bond yields) and with gold at an all time high I can think of 11 straightforward reasons why the Gold Bubble is going to burst and stocks are the primary place one should put their money.
  • It has very few industrial uses.
  • Gold has no dividend yield.
  • Gold has no earnings yield.
  • The US should start selling its gold to pay down its debt.
  • Interest rates are at zero and the Fed is printing money.
  • This guy can't carry the market forever
  • Gold production is rising
  • Gold sentiment is at an all-time bullish high
  • Whenever we see gold sentiment at the levels in the below chart, prices tend to pull back, at least in the short-term
  • Assets in the GLD ETF, the ETF which tracks gold, are also reaching a level usually associated with a top
  • The Oracle is a huge gold bear

Read more: http://www.businessinsider.com/reaso...-burst-2010-10
__________________
When surfing online remember Sturgeon's Law: "90% of everything is cr@p."

© Gregori Potemkin. All rights reserved. But wait . . . fair use allowed and encouraged. Actually, go 'head and publish the whole thing as is. I don't care.
Potemkin is offline   Reply With Quote
Old 10-25-2010, 04:52 PM   #2
Ought Six
Dismember
 
Ought Six's Avatar
 
Join Date: Oct 2008
Posts: 35,164
Blog Entries: 15
Thanks: 176
Thanked 390 Times in 326 Posts
Arrow

If you view gold as nothing more than a short-term investment, then the threat of a possible market correction is valid. I do not view gold that way.
__________________
* I have the right to live, thus I have the right to defend my life from attackers who would take it from me.
* I have the right to my private property, thus I have the right to defend my property from thieves who would take it from me.
* I have the right to self-determination, thus I have the right to defend my liberty from tyrants who would take it from me.
* The only usable tools for these tasks are guns, and thus I have the right to shoot anyone who would take my guns from me.
Ought Six is offline   Reply With Quote
Old 10-26-2010, 06:57 AM   #3
Ross
Senior Level 6
 
Ross's Avatar
 
Join Date: Aug 2008
Location: Melbourne Australia
Posts: 9,465
Thanks: 833
Thanked 1,396 Times in 795 Posts
Hah ! when such commentators cannot think of a single reason
why gold will go higher you know they are totally clueless or paid
shills .

There maybe corrections along the way but when money is printed
like confetti for political expediency and is backed by government debt
not government assets holding gold can hardly be worse than holding dollars.
__________________
All paper is a short position on gold.

“Gold is money. Everything else is credit.”
.
Ross is offline   Reply With Quote
Old 11-02-2010, 07:32 PM   #4
Malcolm
Senior Level 2
 
Malcolm's Avatar
 
Join Date: Aug 2008
Location: Australia
Posts: 2,583
Thanks: 2
Thanked 95 Times in 78 Posts
The only thing pumping Gold so high is "Fear"
As long as packages of explosives are still being found on aircraft and Muslims keep blowing themselves up ..............and Guantanamo Bay stays open the price of Gold will continue to climb. If you turn on the telly one morning soon and a large number of citys have turned to ash under mushroom clouds ....the hype of what "MIGHT" happen will be over and .....well what will you do with all the Gold "Eat It"
Malcolm is offline   Reply With Quote
Old 11-02-2010, 07:36 PM   #5
Ought Six
Dismember
 
Ought Six's Avatar
 
Join Date: Oct 2008
Posts: 35,164
Blog Entries: 15
Thanks: 176
Thanked 390 Times in 326 Posts
Arrow

History shows that PMs are still useful in even the worst of crisises. Gold has a particular effect on the human psyche, and there is always somebody willing to accept it in trade.
__________________
* I have the right to live, thus I have the right to defend my life from attackers who would take it from me.
* I have the right to my private property, thus I have the right to defend my property from thieves who would take it from me.
* I have the right to self-determination, thus I have the right to defend my liberty from tyrants who would take it from me.
* The only usable tools for these tasks are guns, and thus I have the right to shoot anyone who would take my guns from me.
Ought Six is offline   Reply With Quote
Reply

Tags
bubble, burst, gold

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 12:02 PM.


Powered by vBulletin®
Copyright © Jelsoft Enterprises Ltd.