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Bruce Banner

Is Gold A Bubble?

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I think I speak for many of us when I say I wish I had bought some years ago, but the price already seemed steep given previous lows, plus the problem of where to store it loomed large and, as my personal circumstances have since shown, would not have been feasible. Paper gold in my book is also a worry, for obvious reasons. However, a little gold bought some years ago would have been very prudent of course as we can see, and I kick myself regularly

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No gold is not a bubble, its a precious metal, not suds and water.

If that where the case everytime I do the washing up, wash the car, shower etc I would be rich.

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I think I speak for many of us when I say I wish I had bought some years ago, but the price already seemed steep given previous lows, plus the problem of where to store it loomed large and, as my personal circumstances have since shown, would not have been feasible. Paper gold in my book is also a worry, for obvious reasons. However, a little gold bought some years ago would have been very prudent of course as we can see, and I kick myself regularly

If you do buy any gold or silver then only buy physical gold. It will have possibly violent fluctuations but is all going up and I don't agree with Prechter - try Peter Schiff. The dreamers may like this though..and don't rule it out if the world economy goes completely ***s up

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If you do buy any gold or silver then only buy physical gold. It will have possibly violent fluctuations but is all going up and I don't agree with Prechter - try Peter Schiff. The dreamers may like this though..and don't rule it out if the world economy goes completely ***s up

I definitely don't have anywhere to store it at the moment, even if it was half the price. If that changes and if the price seems appealing, I might dip a toe in, in the hope that it's not going to keep dropping once I buy - which could be my usual luck ;)

If I buy some, it'll be physical, and I'll be hiding it in my flat or shed, probably would be in coins and probably will disguise it by putting it in a bag of chocolate ones :D

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This guy is pretty good with the old Elliot Wave charts. He can predict stuff. Is he saying it's a little bit overbought and due a correction, or is he saying it's peaking and coming back to earth?

:o/

I recently read a piece by a friend of Prechter's who is also into Ellliot Wave analysis. The friend saw a bullish case for gold in the chart tea leaves, Prechter disagreed and said the outlook was negative for gold, it was $350/Oz at the time. To give Prechter his dues it seems he's been consistent in his calls, consistently wrong. ;)

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...Where does the 'get rich' factor come into it?

:huh:

By having lots of it and gloating over it in the basement by candlelight wearing fingerless gloves?

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I'm happy with a medium. So, say $5,000 an ounce gold and $350 an ounce silver. :rolleyes:

Hey, all you gold bugs out there, tell me this. If wealth preservation is what gold is all about, and its function is not to make us all rich, but to stop us being poor, then why do so many people think they're going to get rich by owning gold?

Either an ounce of gold always buys you a nice suit and a pair of shoes (or a posh toga and some sandals 1500 years ago) or it doesn't.

Where does the 'get rich' factor come into it?

:huh:

I think I saw a graph that showed the increase in the money supply recently has tracked the pace of increase in the value of gold. But thinking about it, price inflation hasn't increased by the same amount, not yet anyway, so gold is ahead of the curve and therefore making people holding it richer, at least until inflation catches up perhaps. For example, $500 spent on an ounce a few years back will now be worth $1800 and I'm fairly certain that you can still buy a lot more with that $1800 dollars today than with $500 dollars when gold was $500/Oz. So I think it is probably fair to say it can make people richer, at least in the interim.

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Robert Prechter.. "Don't buy Gold now".

He was on goldseek radio recently and he was saying to get physical dollar bills and stick them in a safe where they can't get burnt if there is a fire. The reason being that the politicians will not be able to print more money, due to public outcry, and physical bank notes will become more valuable, as electronic credit is wiped out.

:lol:

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This guy is pretty good with the old Elliot Wave charts. He can predict stuff. Is he saying it's a little bit overbought and due a correction, or is he saying it's peaking and coming back to earth?

:o/

Pretcher has been saying gold is in a bubble for as long as I have heard him on the financial podcast websites, that he is interviewed on, and he has been saying with absolute conviction that gold's massive correction is just around the corner. The poor old sods who listened to him and did not buy at $800, $1,000 or $1,200.

He considers gold to be a commodity, that is why his gold predictions are complete rollocks.

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Just had a thought, I often use Google Trends in my line of work. For those that don't know what it is, it is a google tool which reports, via a graph, how popular a certain search term is. I figured I could put it to use looking into the topic question. I searched for gold, gold price and gold bullion, buying gold, how to by gold, here's the results.

Gold

The results are fairly flat since 2004, only gently ticking up in the the last couple of years.

Gold price

The results show a steady gradual increase in searches since 2007, with a lot of volatility around the trend line. There is a big uptick recently, but these also happened twice in 2008 before falling back.

Gold bullion

Very flat from 2004 until present with one spike in 2008.

Buying gold

Fairly steady since 2005, with a spike in 2008, falling back to the trend line and an bit of an uptick very recently.

How to buy gold

A steady climb since 2007, but not at an exceptionally fast pace. A big spike in 2008, falling back to the trend line and a pronounced uptick recently.

I suppose this gives a proxy of the the public's attitude to gold and purchase thereof. It certainly shows a growing interest, but nothing that would suggest the mania of a bubble. I suppose the next question is are the public necessary for a bubble to take place? Are the money markets and big institutional investors be enough of a driving force on there own? If so, can anyone get figures on how much the big players hold and how those quantities relate to the holding of other financial assets they own, like bonds?

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Gold just looks more alluring by candlelight. She is a damned fine mistress. :rolleyes:

Has everybody got one of these yet? The trick is to carry it around very gingerly, as if it weighs a lot.

http://www.pinkcatshop.com/products/bar--lounge-and-den-decor/decor068-gold-bar-paperweight-or-doorstop-1kg-bullion-bar.html

I've had mine for weeks. Just £9.99 from Amazon.

:D

Very amusing, but what exactly what are you doing poking around at the Pink Cat Shop?

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Gold is money.

Having said that, is anybody watching the 'driveby shooting' in the gold prices today? It looks like we're getting that 'engineered' correction.

I make it $73 dropped in 20 hours.

Buying opportunity, ladies and gentlemen? ;)

That's a drop of what ~ 4%. In a very volatile market it could just be noise. I've got shares in blue chips that are lurching around by that much each day recently.

For me a buying opp would be a drop of 10% or preferably more. I've no idea of the stock levels of the bullion dealers though.

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Hee hee.

I just googled it. The gold bar paperweight is available from a number of fine retailers, but I happened to like the picture.

If you click on it, it looks bigger on your screen. Like the real thing. :D

Are you a newbie gold bug, or are you new to HPC? If you're new, you have to do a lot of posts and prove that you can play nice before you are allowed to post links. One way around it is to describe the place where you saw the interesting chart/picture/article. It took me 2 years to get approval to post links. ;)

Anyway, welcome on board.

Tib

Having seen the pug glasses case they sell and other things to terrible to mention I'd stick to that story if I were you!

Somewhere in the middle. Wouldn't go as far as saying I'm a bug just yet, but I've an open mind and have been interested in a lot of the arguments making a case for ownership. I've been an occasional guest for a while and a change in work commitments has given me the time to get involved, so thought I'd sign up to put in my 2 pence worth and fill a few minutes here and there. I'm actually an hpc recruit of sorts, having been thankfully pointed here by a work colleague a few months back.

No idea on links and what I'm permitted to do or not, all the other links worked, just seemed it didn't like that one. I did notice I can't make more than two posts without leaving a 90 second gap, or a little message comes up, is that typical? Seems a little bit of a pain, guess it's there to stop spamming. Is there some sort of ranking process here where eventually if you post enough you make you way to the inner circle and get extra special posting powers?!

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Only watched some of it because the link was sluggish on my PC, first impressions:

- Hmmmm, wouldn't trust a bloke with those eye brows

- Actually seems like quite a likeable chap now he's talking

- Agree it's better to be out of stocks in a bear market and in cash so you can buy bargains a little further down the line, no point sitting there making a daily loss.

Didn't get to the gold bit, but he's bearish on that as you said. Was it a short term, 'don't buy on the present spike warning', or was he saying he thinks 'it's headed way down' shortly?

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      • down 5% +
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