It really isn’t hard to spot an economic “bubble”, all you have to do is ask yourself, “Where are all the voices of ‘common sense’ telling me is the one place to put my money?”

Well, if you won’t take my word for it that gold is the new bubble, you must be taking Glenn Beck’s, Sean Hannity’s and Bill O’Reilly’s word that the best and most secure investment that can only make you richer is gold.

I don’t know about you but I knew the housing bubble was a bubble, I knew the dot com bubble was a bubble, I even recognized the Tulip bubble way back when.

There is a natural ebb and flow to investments, in which legit investments earn profits or lose value.

They don’t go up 50% a year…unless they are sitting on top of a bubble.

So, there may be a silver lining to all of this, if all the right wingers are following their leaders’ advice and investing in gold, when a rush to sell gold wipes out their investments, that’s less money for Palin 2012.

48
Leave a Comment

Please Login to comment
11 Comment threads
37 Thread replies
0 Followers
 
Most reacted comment
Hottest comment thread
17 Comment authors
KhiradPepeLepewAdLibescribacatdarwind Recent comment authors
  Subscribe  
newest oldest most voted
Notify of
escribacat
Member

Google must be a bubble.

Report this comment

Emerald1943
Member

Hi everyone!

This is just plain ol’ funny to me! I started my little gem and jewelry business about 20 years ago, a part-time week-ends only gig at first. When my life situation would allow it, I went full time and opened a really neat little shop, including a “gem mine” where you pan for rough gemstones and you may opt for us to cut them into faceted stones. We offer 14K and sterling settings of all kinds.

I have watched the gold market more than most since it affects my bottom line. When I first started out, gold was about $500 per ounce. It went down for a while and we even saw a low of around $325/oz. for a time. About two years ago, it began to climb and now is fluctuating around $1,100 per ounce! Quite an increase!

My question about this whole thing is, “Why would anybody buy it when it is at record highs?” The time to buy would have been two to three years ago, which I did, buying as much inventory for my shop as possible. We have had to re-price our gold inventory to reflect the increased cost several times.

My point here is that there is no guarantee that gold will go any higher in value than it is right now. More than likely, as the economy improves in this country, gold will go down in value…and all the Beck-o-bots who have bought it at this inflated price are going to lose their shirts!

Report this comment

darwind
Member
darwind

I’m Canadian and I have been investing in gold for years and I must say you folks just don’t get it. India’s banks recently bought 200 tons gold from the IMF and China and most of the worlds banks are diversifying into the gold and silver. Why? Insurance against fiat money printing systems. Gold and to a lesser extent silver has always been considered money. The US dollar will have ups and downs but for the most part continue to fall for many many years to come and so Gold will continue to rise. I only buy gold on the dips. It’s that simple. Gold has been on a steady even rise for over 10 years, so I’d hardly call that a bubble. Only when it finally reached 1000 did people sit up and take notice. IMO it’s a good idea to hold at least 15% of your net worth in precious metals to preserve your wealth and for insurance against a fall out of the dollar. Let’s put it this way. In order for the US to balance it’s budget they need to raise taxes by 50% over the next 10 years or destroy the dollar by 50% and there by reduce the debt. What do you think will happen? I’ve never seen a politician get elected on a 50% tax increase. 1000 is the new 0 for gold.

Report this comment

KQµårk 死神
Member

Welcome. Honest question where do you keep it?

Report this comment

Pepe Lepew
Member

A Canadian! 😀

Report this comment

KQµårk 死神
Member

Stop faking me out over the whole Canadian thing. You won’t even tell me if I should play Kipper at Vancouver on my fantasy hockey team.

Report this comment

Pepe Lepew
Member

I told you I don’t do fantasy hockey.

Kiprusoff vs. Luongo?

Tough call.

Report this comment

jan4insight
Guest

“all the Beck-o-bots who have bought it at this inflated price are going to lose their shirts!”
~~~~~~~~~~~~~~~~~~~~~~~`
Other than the visual image, what a lovely thought!
😉

Report this comment

bito
Member

Isn’t that how one gets rich? Buy high-sell low? Or is that just derivatives and AIG makes up the difference?

Report this comment

javaz
Member

Hi Emerald!
Informative post and what an interesting business you have selling gems and jewelry.

Report this comment

SueInCa
Member

Actually, I was thinking this same thing yesterday. Not sure it is a government controlled bubble, but a bubble nonetheless. And none of these sheeple take in to account that if there is a cataclysmic event and the dollar is destroyed, gold won’t have much value either? Even if you were able to sell it back, I would think you would do so at a loss, but I am not the smartest when it comes to these types of commodies. This is another gimic to drive up the wealth of a certain sector of our country, charlatans same as the banking industry.

Report this comment

BigDogMom
Member
BigDogMom

Sue, this gold that these poor people are buying are in the form of gold coins, which will probably have 1/3 the value of gold in the form of ingots or gold bullion, when it comes to market value and when they go to sell it.

When gold in made into coins in falls in to the category such as antiques, artwork, stamps and other collectibles…and there is a limited market/buyers/collectors that would purchase such items…what is hot today, may not be hot tomorrow….unless it’s one of the masters such as a Van Gogh.

You are right in saying that these gold companies are charlatans, the only person that is going to make money on this is the company selling the gold and their spokespeople, ie., Glen Beck et al.

http://www2.goldline.com/check.html?tsalp=br1gl&term=goldline.com&refcd=GO000000101654395s_goldline.com&tsacr=GO4104340370&gclid=CK-DsJv8lZ8CFZZ75QoddRVlMw

Report this comment

KQµårk 死神
Member

Good point it’s a suckers bet that way too. Gold is not really sold by the once that way most people think. The gold you can buy by the once is actually not in your possession physically. It’s sold as paper shares that are supposed to be backed by gold bullion.

Report this comment

PatsyT
Member

Try as they may, those Beckerheads will never be Clint Eastwood and Lee Marvin… GOLD !

Report this comment

Chernynkaya
Member

Whenever I hear about people scurrying to buy gold, I figure they are the same as survivalists– betting that the world is heading towards cataclysm. It’s kind of fascinating, actually. What triggers that fear (wish?) in people? The current impulse to get gold, IMO, is the election of the first AA President. People freaked out at that–OH Noes!– a black Prez and America is over. The same with the Mayan 2012 hysteria. There are also those, regardless of which party or president is in power, who are always expecting the sky to fall, though.

What gets me is that even if the world turned into “Beyond Thunderdome” tomorrow, what good would gold do? Me, I’m investing in water! 😉

Report this comment

KQµårk 死神
Member

The ignorant part is if these survivalists are right what value will gold have anyway? Pre-civilization gold was not important and if we ever get to a post-civilization period it would have no value again. Food, water, animal skins would be the most important commodities.

Report this comment

Khirad
Member

And don’t forget women and sheep!

Reference, just in case you didn’t catch it before and worry for me: http://www.truthdig.com/avbooth/item/colbert_report_joining_the_conservative_gold_rush_20091216/

Report this comment

Tiger99
Guest

Check my list below for ruling your local Kingdom…

Report this comment

BigDogMom
Member
BigDogMom

It’s really says something sad about some of the people in our country actually believe these snake oil salesman on TV. But like P.T. Barnum said, “There’s a sucker born every minute.”

Waiting for the day that Mr. Beck is knocked off his pedestal when this bubble breaks…

Report this comment

dgraz
Member

I agree with you about gold being a bubble.
If you want to read the best book on investing, read “The Intelligent Investor” by Benjamin Graham.
The book was recommended by Warren Buffet and it defines investing compared to speculation.

Report this comment

BigDogMom
Member
BigDogMom

Investing 101 – Diversify, equal mix of low, medium and high risk stocks, bonds and funds depending on age, income potential, life goals and current assets.

Report this comment

SueInCa
Member

That is exactly what we did.

Report this comment

KQµårk 死神
Member

It more plays into the fear of their base because we have the first socialist president than being a sound investment strategy. Any canny investor knows you have an investment portfolio and putting your money in all one thing is stupid. The funniest part of their hypocrisy is at least in the short term the stock market has been the best investment when all these same right wingers were telling us back in February that the stock market was a terrible investment.

Let me go one step further and take a jab at “populist conservative” teabaggers once again. You know the conservatives that want to dismantle the Fed and make currency “hard” again by backing it up with a commodity. Now that is a brilliant fucking who’s gong to put the bell on the cat idea. Which commodity, oil, gold, uranium, Oxycontin pills, Adlib posts, etc? Basing currency on a commodity will just make that commodity overpriced and create more reasons for countries to go to war to get that limited resource. Before people get on me the Fed system does need to be reformed but a commodity backed currency is not the answer.

BTW I just saw a Newsmax commercial with purchase of a subscription you can get Palin’s book for $4.95. Let’s set Palin’s book as the commodity to set the money standard on, that’s the ticket.

Report this comment

kesmarn
Admin

I think my cat’s used litter is worth more than Palin’s book. Even though they are both “full of it,” I think my kitty’s smells better.

Report this comment

PatsyT
Member

I have three dogs that produce plenty of ~commodities~ in our back yard!

Report this comment

kesmarn
Admin

And I’m sure any of the three would do a better interview with Katie Couric than S’arah did, Patsy>

Report this comment

Tiger99
Guest

I scoof at the “Gold” will save you in economic collapse theroy…

Thats why I hoard Cocoa, Sugar, Salt, Coffee, Tampoons and Toilet Paper… 😈

Report this comment

SueInCa
Member

you forgot water………….

Report this comment

KQµårk 死神
Member

😆 Now those are essential commodities.

Report this comment

kesmarn
Admin

You have pretty much cornered the PMS market there, Tiger. My money’s on your portfolio. 😉

Report this comment

BigDogMom
Member
BigDogMom

LOL….wait a few years she’ll corner the hot flash market…invest in makers of valium, zanax, soybeans, Evening Primrose, ice makers, air conditioning and summer night gowns in the winter!

Report this comment

kesmarn
Admin

…throw in, perhaps, a few Ashton Kutchers…

😉

Report this comment

Khirad
Member
BigDogMom
Member
BigDogMom

Sweet! 😆

Report this comment

bito
Member

Read an article with charts on the history of the price of gold over the last 50-60 years. It has never been a great deal for long term investment. Barley has kept up with inflation. Had a good friend (a trust fund baby) who lost his arse in the sivler market when the Hunt boys tried to corner the market!
Tulips are in a bubble? Oh, sh**! 🙂

Report this comment

Chernynkaya
Member

Nah– don’t worry, Bito. That was in Holland in the 1600’s. 🙂

Report this comment

bito
Member

Cher, just a feeble attempt at humor.

Report this comment

Chernynkaya
Member
kesmarn
Admin

You must have been a mere lad during the Tulip Bubble AdLib! And you certainly have aged well.

I’ve had the same (heh-heh-heh) thought about Beck and all the Beckazoids out there who are buying gold at $1000/ounce and hoarding it. Wait till THIS bubble bursts! King Midas Beck will have something real to cry about then; no need for vaseline under his eyes.

I say: Let ’em eat gold! Kind soul that I am… 😮

Report this comment

bito
Member

k’es, I would rather they ate diamonds. 😛

Report this comment

kesmarn
Admin

I understand they are chock full o’ valuable fiber, b’ito. And I have to say, I might actually volunteer to empty bedpans on the Rich Guys Unit in the hospital. Pannin’ fer jools, pardner!

Report this comment

bito
Member

k’es, “Pannin

Report this comment

kesmarn
Admin

But think of it, b’ito. If these guys are ingesting diamonds, it would be my opportunity to get into a lucrative business starting at the “bottom,” so to speak.

Report this comment

bito
Member

k’es, I hope you don’t work on a post-op floor! I can see the patient with stomach surgery yelling “Stop making me laugh!! OWWW! Morphine! ”
😆

Report this comment

kesmarn
Admin

Actually, now that you mention it, b’ito, I have to say that I do get a lot of post-ops. But I make sure I give them the morphine BEFORE I joke with them. It would be cruel not to, considering my jokes.

Report this comment