Why GOLD is being called "a bubble"...

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Uploaded by on Feb 16, 2010

"A stopped clock is right twice each day" has now become the basis for a writing style adopted by financial journalists and commentators.

They all want to have an article sitting in wait of a bubble bursting so they can refer back to it as being their 'prediction', when a bubble does actually burst.

'Experts' are, I suggest, sowing seeds they hope to reap later when a bubble again bursts. They crave the status of 'the man who called the bubble top'.

This has, I believe, come about because of the tremendous kudos attributed to commentators such as Roubini, Shiff, Faber, Prechter, and others for predicting the housing bubble and the subsequent crash. Other financial commentators see their TV exposure and pine with envy for the lucrative interviews and increased newsletter circulation.

I am not taking anything away from the talented foresight of these experts - they were spot on in the end - but their timing was little better than any other Joe-investor looking at the situation and thinking "You know what... this is going to end very badly at some point".

They knew - as did anyone with common sense and a calculator - that it would end badly..... but predicting the timescale was no less difficult this time than it had been in the tech bubble, the roaring 20's, or the time of tulip mania.

So, it may not pay to listen too closely to the current talk of gold bubbles and their bursting.

For sure, gold will end in a bubble - a crazy rush that spikes the price to unprecedented levels... but, imo, not yet.

The reason I say that is that the madness of govts is far from over - only honesty, sanity, and prudent leadership can kill gold.

Have you seen much of that lately?

Nope, neither have I.
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Music thanks to David at pottingshedgene
http://www.youtube.com/user/pottingshedgene

SOROS - "Gold is ultimate bubble"
http://www.telegraph.co.uk/finance/financetopics/davos/7085504/Davos-2010-Geo...

Meanwhile, Soros INCREASES his stake in GLD (gold etf)
http://www.reuters.com/article/idUSN1624135220100216

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Uploader Comments (flaskofcoffee)

  • Meanwhile..... Soros is BUYING more gold!

    From Reuters;

    "Billionaire investor George Soros' hedge fund more than doubled its bet on the price of gold during the fourth quarter, a portion of the firm's total U.S.-listed equity holdings of $8.8 billion at the end of 2009."

    Link in the sidebar of the vid.

    George - you cheeky rascal. ;-)

  • good insight as always Flask, nice to see you back again.

    I see black gold (oil) shot up 4% already today, another important commodity to watch.

  • Hi Webozzy.

    I'm still short the USO oil fund at the moment, have been for some weeks. I hoped to play the seasonal pullback (Remember last year's vids at the bottom in Feb?) and it has worked so far.

    I did, however, expect oil to be much lower by now, so clearly the inflation-FEAR is much greater than I assumed.

    Today is quite an up-move in oil, but I'll stick it out until no profit left in the short, or I think oil has bottomed for the year.

    Hoping for some oil stocks cheaper. RIG, BPT,

  • Keep on buying then.

  • Hi Waldentree.

    In my own case, I keep on just holding the physical, but have added to miners on the pullback, mainly AUY, using options and some stock.

    I think gold is eventually good to $1750+ before this whole mess is over. (See earlier video on gold timing for my reasons why).

    Deflation is the enemy of gold... but deflation is also the enemy of Bernanke - I think Bernanke will continue to support gold with his wild tactics to prevent "Great Depression 2'.

Top Comments

  • gold is not in a bubble until bernanke and tim geithner are hanged.

  • I listened to all the audio i could scrape together of what George Soros has said for like 20 years.

    I noted that he doesn't like people buying gold...

    because he stated that people buying and locking their money up in gold is BAD.... because it stops the markets from flowing correctly, in other words he want the liquidity to stay in the arena where he and the elites can make money! But we just want to save for our retirement... well i do any way

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All Comments (38)

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  • Gold may eventually get into a bubble and pop, but it will be LONG after the dollar and its paper friends are all instinct...

    Only thing left to ask yourself is which is better at keeping your wealth over the this period?

  • Tulipmania! I only found out about that from the board game. Not too sure about the 'Gold bubble' thing though. There hasnt been an honest and sane government anywhere in a long long time.

  • the gold bubble is only at 35psi 65psi to go before a pop

  • gold is the ultiment bubble, that will become apparent to everyone once fiat loses all its value, and everything is priced in gold and silver.then once the world smartens up, and start working for the good of all, then we should start to see the downward trend. you just need to look at it from their(soro's/masons) perspective.they(soro's) are telling the truth

  • Gold's advance from the $705 in early 2008 is so far a 3 way move and qualifies it as a "B" wave in Elliott terms. It looks quite similar to the Dow's move from 7000 to 14200 from '03 to '07. A fifty percent initial drop is quite likely.

  • Nice work with the Soros impression!

  • Why do you think the gold bubble "must" end with euphoria? Simple irony? ie. that this is how bubbles always end?

    But I think the most ironic thing today wouldn't actually be another bubble bursting, ie gold, oil, government debt, etc. I think the most ironic market would be one that absolutely "no one" has predicted. ie one that stays in limbo and where all-long, all-short and macro-speculative strategies will, actually, be the "least" successful.

    Thoughts?

  • Follow not what they say, but what they do. And gold is not a bubble, that's clear to anyone who really paid attention to what was going on, for the last year or two. They can fire all weapons @ gold and meanwhile insiders will keep buying it, because the real bubble is on the other side of equation - in paper, while rising price of gold (or any PM or commodity) is just a reflection of it.

  • Love the End...I'm with you Big Time on this:) 5*****Fave!

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