The gold bulls (I was one until $1300) often use a variant of the greater fool theory to justify continued price advance. "Yeah, sure gold is up 600%, but there will come along a greater fool to buy it off of me." Greater fool theory justifies all bubbles, until we run out of fools. A common thread on this board is that the Chinese, the Indians, the Arabs, the whatevers will be the greater fools to sell our gold to. Well, I personally know many Chinese and a few Indians, and they are the opposite of greater fools. They are experts at recognizing good sell points, and avoiding overpriced assets. I think we have run out of greater fools, so I think gold has a substantial correction--10 to 20% After that, perhaps off to the races. Run from $250 has been great, but now the pause to refresh.
same thing happens in high pe MOmentum growth stocks
people want to own the stock so bad, like apple or amazon..regardless of cost and common sense. these stocks can DO no wrong in their minds. a beat means it should go up more, a miss means its a chance to buy more
no scenario is a lose scenario when something is in a bubble
remember in 1999
i'm not saying gold will collapse but it needs to calm down and pull back 20% and shake out hot money who are clueless
cwtripps you said this when gold was at $1100 an ounce as well, your another windbag who changes his mind every time the wind blows. You dolts keep fighting the fed and you will keep losing money, never fails, idiots and there monies always part LOL
In the last 2 years the USD is down only 5% against the Euro.
Inflation right now is non-existent, and the Fed has indicated that their goal is 2% inflation OR LESS.
Gold is up *****180%***** in the last TWO YEARS! (That's gold, not a Pharmaceutical IPO.)
That is unsustainable.
This is the definition of a bubble.
Wait a couple years and see those greater fools made more money that smart a$$ like you. As a frustrated long, the longer you wait, the higher gold price will be. Better be a greater fool buying gold when Fed prints more paper money.
and like so many other posters have said:
If you think gold is in a bubble then go buy:
general market stocks
go ahead short gold and silver
Go ahead, make your day.
What a genius aka the greatest fool of all time
No one is listening. Your just an annoying pest paid to distract the board.
if your going to be a short have some real arguments, not some kindergarten pseudo babble.
I actually do own silver. I didn't sell it when I sold the gold. Silver is underpriced wwith respect to gold, so when gold falls $200 or $250 or so, silver may only fall half as much in percentage terms.
Thats the other argument--paper money (esp. $$) in the G20 will become toilet paper. Another greater fool justification. Even Ben will defend the dollar at some point. He want a little asset inflation, not dollar collapse. Gold, being the main enemy and competitor to paper currency, will be where the battle is fought.
I expect an announcement soon of major, perhaps massive, sales of gold from the CBs and IMF.