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SideShowMel0329 (33.43)

Luxury jewelers hammered during recession - gold at decade highs



March 07, 2009 – Comments (3) | RELATED TICKERS: SIG , ZLC.DL , TIF

As demand decreases, so should price. Gold doesn't get its value from the small quantities sold to semiconductor companies. Its value comes from the rich buying thousand dollar gold earrings.

So tell me. How is gold not on a bubble right now?

3 Comments – Post Your Own

#1) On March 08, 2009 at 1:22 AM, cbwang888 (25.55) wrote:

Foreigners are no longer buying any more US treasury, so they are buying gold. Get it?

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#2) On March 08, 2009 at 4:49 AM, jester112358 (28.17) wrote:

Yes, gold is a store of value.  Mid-east governments and China are stockpiling as rapidly as they can without pushing the price up too much.  There is a physical gold shortage and people are now taking delivery of futures contracts rather than rolling them into new paper.  Brinks, the armoured car company, is overbooked with deliveries.  The weathly are doing the ultimate hedge and you should be doing so too.

 You are quite right regarding jewelry demand destruction, particularly in India.

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#3) On March 08, 2009 at 8:13 AM, OctoStalin (34.29) wrote:

We don't have gold standard anymore. Lol. People don't seem to realise how gold is just a metal that's use is declining. 

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