Bye Bye Gold Nonsense

[memphis]

Was bound to happen. Speculative bubbles can't endure. Wonder if the suckers who bought into Beck's gold campaign will realize how thoroughly they've been had. Doubt it.

[memphis]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

[memphis]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

It was being said that it had peaked about 200$ ago. And again about 400$ before that. Etc.

Gold is a hedge against inflation and currency devaluation, both of which are occurring across the world (especially in the UK, US, China, and Japan). If currencies resume their strength, gold will fall. Except if that happened it would imply that inflation has cut off which would require that the Fed stop its various programs which would result in the recession coming back in full force and then some (not that they are actually preventing it so much as delaying it).

But please, keep on claiming that gold is in a bubble and that it has peaked, I would love it to drop back down a couple hundred dollars so I can buy some more.

You want to buy it when it's falling? Ok.......

[memphis]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

It was being said that it had peaked about 200$ ago. And again about 400$ before that. Etc.

Gold is a hedge against inflation and currency devaluation, both of which are occurring across the world (especially in the UK, US, China, and Japan). If currencies resume their strength, gold will fall. Except if that happened it would imply that inflation has cut off which would require that the Fed stop its various programs which would result in the recession coming back in full force and then some (not that they are actually preventing it so much as delaying it).

But please, keep on claiming that gold is in a bubble and that it has peaked, I would love it to drop back down a couple hundred dollars so I can buy some more.

You want to buy it when it's falling? Ok.......

Anybody who bought Gold when the thread was made would have made a 14% or (28% annualized) return if they sold today.

So he didn't time the peak exactly right. A person pointing out that real estate was overvalued in 2006 wasn't wrong becuase it was that much higher in 2007. A bubble's still a bubble.

[memphis]

Gold is still in a long-term bull market - that much is certain.  Unlike almost all other commodities of which questions are much greater.

Wrong. It has peaked and will soon fall spectacularly, just like oil. It isn't that hard to spot these bubbles. When "everybody" is talking about them and how great they're doing (ditto for real estate few years back) it's time to sell, or if you're adventurous, short in a big way.

It was being said that it had peaked about 200$ ago. And again about 400$ before that. Etc.

Gold is a hedge against inflation and currency devaluation, both of which are occurring across the world (especially in the UK, US, China, and Japan). If currencies resume their strength, gold will fall. Except if that happened it would imply that inflation has cut off which would require that the Fed stop its various programs which would result in the recession coming back in full force and then some (not that they are actually preventing it so much as delaying it).

But please, keep on claiming that gold is in a bubble and that it has peaked, I would love it to drop back down a couple hundred dollars so I can buy some more.

You want to buy it when it's falling? Ok.......

Anybody who bought Gold when the thread was made would have made a 14% or (28% annualized) return if they sold today.

So he didn't time the peak exactly right. A person pointing out that real estate was overvalued in 2006 wasn't wrong becuase it was that much higher in 2007. A bubble's still a bubble.

It doesn't, however, look like we've reached the outer edge of the bubble.  When it collapses, we might gold still around or above 1/2011 level.

No, because when bubbles collapse, the commodity becomes undervalued, something gold certainly wasn't in January. Look how far oil fell in 2008. And that was a commodiy that's actually useful. A blind man could see this a mile away.

[memphis]

[memphis]

Gold closed at $1661.10.  It was at $1421.60 on 12/31/10, which Opebo thought was too high.

We get it. He didn't time the peak right. Get over yourself already. There's no way to know exactly when a bubble wil burst.

[memphis]

If that's what you believe, please put all your money into gold.  You really can get double digit gains forever. It's truly an excellent idea to buy a commodity when it's the hot thing that everybody is talking about and is very expensive. I also have something else to sell you that's an equally amazing opportunity:

[memphis]

Bump. Now lower than it's been in 6 months and almost 20% below peak. Who ever could have foreseen?