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HoldThatWinner (97.58)

The Midas Touch :)

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October 07, 2010 – Comments (5) | RELATED TICKERS: GG , GLD , GSS

The Dot-Com Bubble, the Oil Bubble of 2008, the Housing Bubble, (all the previous bubbles) and now we have... The Gold Bubble.

Last year as I sporadically turned on the TV, I noticed these commercials that were telling me to sell my old gold for 'new cash'. Now why in the world would I want to do that I asked? In other words, you are telling me to give my gold up now so that you can turn a greater profit in the future? With the printing press working overtime, that just doesn't sound like it would be in my best interest I said to myself. It just didn't make sense as these ads continually bombarded me begging me to give up the precious commodity.

(Rewinding Time)

I remember my father telling me about the 1970's (before I was born) when silver was trading 10 for 1. In other words, you could take a silver quarter (pre 1963 as it was mostly silver) to the bank, and you could receive $2.50 for a 25 cent piece. He told me that he loaded up all the silver coins he had and rushed down to the banks to convert it at the 10 for 1 price. As with all bubbles, it eventually corrected back to normal standards.

 

So here we are, gold has been recording new highs almost every week this year. Now I turn on the TV and they are telling me that "Gold dispensing ATMs" are surfacing. Now, why in the hell would I want to carry gold around? What is this? The 1600s all over again? Maybe they should have "Pirate Chest ATMs" next to the Gold Dispensing ATMs that way you can take the loot with you. arrrgggggggg.

So previously you guys wanted to buy my gold, and now you want to sell it back to me? It just doesn't make sense. As the elevator rises eventually it reaches a top and can't go any higher (even in the tallest building) right? So how high? I dunno, but I do remember when oil was above $140/barrel, people were calling for $250/barrel, $300/barrel, and even higher.

 

Will it correct and make a run higher here?

More than likely.

Will it see levels lower than $1000/oz? Or even $500/oz again?

As Palin says "You betcha"

 

It's gonna be interesting, as with all Speculation.

5 Comments – Post Your Own

#1) On October 07, 2010 at 11:29 PM, QualityPicks (32.31) wrote:

I was screaming housing bubble since 2002, it went on for another 4 years :) I have no idea how long this one will go, but the Fed and all the governments around the world are paying for it, just like they did for the housing bubble etc. 1.3 trillion dollars deficit in 2010. They can't stop printing.

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#2) On October 08, 2010 at 12:08 AM, HoldThatWinner (97.58) wrote:

I was screaming housing bubble since 2002, it went on for another 4 years :) I have no idea how long this one will go, but the Fed and all the governments around the world are paying for it, just like they did for the housing bubble etc. 1.3 trillion dollars deficit in 2010. They can't stop printing.

I agree Quality, but as you know, sooner or later it's gonna be "Musical Chairs" and unfortunately, someone is always left without a seat, err, house, err, I mean, left holding the bag?

It's gonna be interesting, but pretty sure sooner or later it will be...

Up and down the London road, In and out of the Eagle, That's the way the money goes, Pop! Goes the weasel.

 

Good Luck To All

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#3) On October 08, 2010 at 12:39 AM, TMFAleph1 (95.74) wrote:

Hi HoldThatWinner,

I don't think we are in a gold bubble yet; if we are, it is the early stages. Look for my upcoming article on whether or not gold could go to $10,000/ ounce -- a notion that I have come across a couple of times recently!

Alex D

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#4) On October 08, 2010 at 12:59 AM, HoldThatWinner (97.58) wrote:

Look for my upcoming article on whether or not gold could go to $10,000/ ounce -- a notion that I have come across a couple of times recently!

Thanks Alex, I'll be looking for it!

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#5) On October 10, 2010 at 7:55 PM, dwot (99.57) wrote:

Qualitypicks is correct, you can not predict how long this will go.  I have been out of the Vancouver housing market going on 3 years in January and there hasn't been any correction to speak of at this point.  I think it even when up a bit and is back at about where I sold right now.  There was a housing bubble in 1980 and in some places you needed 10 years to see prices return to those levels.

 I didn't touch oil or uranium because of bubbles and they took a couple years to burst.

Overall I think gold is on the high side, but it would not surprise me at all to see it double before it returns to something between $500 and $1000.

I love your use of greek mythology in your title :)  I have used it within my own blogging, about 1/5th to 1/4 of the way down the page.

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