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StatsGeek (29.95)

Yet Another Goldbug Thought

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October 05, 2010 – Comments (11)

Could gold become the first global bubble?

YES!  Notice that I didn't say that it WILL be the first global bubble -- only that it COULD.

One of the reasons that I own gold is because it has universal value.  I could take my gold to any country in the world and use it to buy food, shelter, land, etc.  That is in stark contrast to paper currency (or digital currency).  Those unelected folks at the Fed get to decide our monetary policy.  They have been redistributing trillions from savers and producers to debtors and banks.  Who can tell me how much more money will be printed over the next 10 years?  Who can guarantee me that there won't be a debt default?  Who can guarantee that there won't be currency wars -- a race to devalue currencies? (already starting).

With 6 billion+ people in the world, what would happen if people everywhere experienced the revelation that I have, namely that fiat currencies are all eventually doomed? 

Think about it -- Gold could become the first global bubble.

11 Comments – Post Your Own

#1) On October 05, 2010 at 1:04 PM, portefeuille (99.78) wrote:

I have 1 oz of gold. If it was not inherited I would sell it just to make sure I have nothing to do with those gold bugs, hehe ...

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#2) On October 05, 2010 at 1:11 PM, portefeuille (99.78) wrote:

I think the price of gold will be below 1000 CHF per oz at the end of 2010, by the way ...

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#3) On October 05, 2010 at 1:20 PM, StatsGeek (29.95) wrote:

portefeuille --

I truly can't fathom how you can put your trust into a system of the unlimited paper printing machine.

Good luck to you!

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#4) On October 05, 2010 at 1:32 PM, KurtEng (33.00) wrote:

I would never accept gold as payment from a private person. I would have to be certain that the purity was as claimed and have an accurate way to weigh it. Those two things aren't trivial. I prefer to have proof of the transaction.

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#5) On October 05, 2010 at 1:42 PM, XMFSinchiruna (28.54) wrote:

According to your own post, then, it is fiat currency that would then represent the first global bubble. I would argue that derivatives already fit that bill as well.

Port, CHF?

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#6) On October 05, 2010 at 1:42 PM, cbwang888 (25.84) wrote:

Gold, take inflations into account from the last 3 decades, is NOT yet a bubble...

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#7) On October 05, 2010 at 1:44 PM, MegaEurope (22.68) wrote:

With 6 billion+ people in the world, what would happen if people everywhere experienced the revelation that I have, namely that fiat currencies are all eventually doomed? 

It is not at all necessary for 'everyone' to invest in something for it to become a bubble.  In the 1920s, less than .5% of Americans speculated in real estate.  In the 1990s, less than 20% speculated in internet stocks.  The level of participation at the height of the bubble varies widely with the market.

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#8) On October 05, 2010 at 1:54 PM, starbucks4ever (99.56) wrote:

"I think the price of gold will be below 1000 CHF per oz at the end of 2010, by the way ..."

My search engine thinks CHF means Congestive Heart Failure. Yes, this metal will still break many goldbugs' hearts... 

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#9) On October 05, 2010 at 3:01 PM, tfirst (74.27) wrote:

I've been carrying an electronic scale and a bottle of acid for the past year now and accepting gold or silver coins for payment for the goods I sell. People are shocked when they realize the scrap value of that dental floss sized broken gold chain that has been sitting on their dresser for the past ten years. This season has been good and until those crooks at the Fed take money out of circulation, instead of printing, gold can only go up..I see gold at close to 1500.00 by the end of the year if things continue as they are.

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#10) On October 05, 2010 at 8:31 PM, PaxtorReborn (30.33) wrote:

I think he means Swiss Francs (CHF)

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#11) On October 05, 2010 at 10:20 PM, workfor (< 20) wrote:

The #2 post should read:

I think the price of gold will be below 1000 CHF per oz at the end of 2010, by the way...I hold zero short positions in gold in my CAPS account.

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