The gold bugs are buying gold en-masse. Here, in the Jewelry District in Downtown L.A., 90% of Jewel storefronts have a sign, "We Buy GOLD."
Also, on TV, there are advertisements for people to sell their gold jewlery for cash.
Maybe the jewel stores will help send gold to $2000 because of the devaluation of the USDollar caused by the mass printing of U.S. Dollars---in the trillions, as I've heard.
Or, can the current Gold Mania become a Tulip Mania where people sold their houses to buy tulips way back in the 1800s, as I recall?
Please, can, any of the longs or shorts of gold respond, to the question: " If 90% of Jewel Storefronts have a sign--We buy Gold, can that become a sign gold is going to $2000 from the current $1104 or is it a gold bubble?
<<Or, can the current Gold Mania become a Tulip Mania where people sold their houses to buy tulips way back in the 1800s, as I recall?>>
The tulip mania was back in the 1600s. People are much more rational these days. Just check our local Las Vegas housing market for proof.
From what I have seen, manias occur when the vast majority of people are buying, and there are few sellers. That's not the scenario you describe. Jewelry stores willing to buy and large numbers of individuals willing to sell to them sounds like a normal reaction to people realizing they'd rather pay off some of their debts, or have some money to live on, rather than hold onto their gold. In a mania, everybody thinks the price is going much higher and they won't part with whatever it is.
Rather than mania, which is irrational, I suspect the real force behind gold price increases is the anticipation that the dollar will slide due to all the nonsense in Washington and the Fed. That seems rational to me, but maybe I'm the one who's manic?
You have to ask yourself why? The reason is the minions (you) have no idea what your gold is worth so you sell it to the sharks at a discount. It will be a bubble whe it IS NOT CALLED a BUBBLE of MANIA. It will be a bubble when the houswives of Orange County talk about the price of a gold eagle versus a silver eagle. We are not even close. If you understand manias and how they progress you would have answered your own question. History repeats, but human psychology does not.