The Midas Touch :)
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.
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.