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Are we in a gold bubble?

http://www.thisismoney.co.uk/markets/article.html?in_article_id=498268

George Soros thinks so.

Did anyone here actually buy gold?

Better sell.
Permalink sharkfish 
January 28th, 2010 8:55pm
How about selling some US bucks? :)
Permalink Likely Longer 
January 28th, 2010 9:08pm
in a year from today we'll see gold at $750.
Permalink argv[0] 
January 28th, 2010 9:57pm
Or $1800.
Permalink CC 
January 28th, 2010 10:15pm
I've been saying for a while that we're in a gold bubble.
Permalink Aaron 
January 28th, 2010 10:38pm
If that is true, why does the value of gold stay relatively fixed compared to things with actual value such as oil, land, pork bellies.
Permalink CC 
January 28th, 2010 11:58pm
over time, gold rarely beats inflation.

when the value skyrockets, more mines are opened and more scrap/existing supply is converted, increasing supply.

also increasing supply, the very conditions that make gold prices go up (market uncertainty, bad economy) drive down the demand for gold as jewelry (less people buying exotic non essentials).
Permalink argv[0] 
January 29th, 2010 12:17am
Yeah, it doesn't beat inflation at all. Gold is not so much an investment but a way of avoiding the inflation tax.
Permalink CC 
January 29th, 2010 12:20am
Are you able to actually buy physical gold at market price? It doesn't seem to even be available.
Permalink CC 
January 29th, 2010 12:21am
Buy it right now, I mean. I've bought gold before, but right now local dealers don't actually have it and those who do are selling far above the alleged spot price.

It's kind of like trying to buy things in Zimbabwe or Venezuela for its true value using the official exchange rate. A theoretical number.
Permalink CC 
January 29th, 2010 12:23am
i bought a 24k round gold slug at market price (no sales tax) plus  approx 1% "design" fee in qatar in the gold souqs.

24k gold is weird looking- not what you think when you see most jewelry. more flat orange than anything else.
Permalink argv[0] 
January 29th, 2010 12:27am
though, the gold souqs are more known for ornate jewelery.

you can design your own pieces, and have the goldsmith make them custom. he gives you the mold with the product, so you know your design is truly unique.

though, an appropriate tip is to return the mold to him.
Permalink argv[0] 
January 29th, 2010 12:36am
You knew it was a ridiculous housing bubble when all of the TLC "flip this house" type shows appeared on TV, with asshats hoping to buy and resell houses and make a mint.

When something becomes almost a meme like that, it's a bubble and it isn't where you want to be. "Sure bets" are usually sure losers.

Same with gold. The infomercials are full of gold-related shizzle. The media has stories about how banks can't keep enough gold in stock for retail sales.
Permalink df 
January 29th, 2010 11:24am
Is he putting his money where his mouth is or is he just being inflammatory to get free news time?

I think Peter Schiff predicted gold would hit $2000.
Permalink Kenny 
January 29th, 2010 11:57am
Why is Soros saying this? And why now? He made his billions by manipulating currencies and screwing millions of people into poverty, such as with the 1997 Asian Financial crisis. Is he trying to fool suckers into selling gold so he can snap it up at a cheap price? Does he really think there is a bubble?

And, like CC, I've been having a hard time acquiring actual gold at anything near spot prices. So the market for gold is really screwy. It is behaving as if some force is keeping the price of gold artificially lower than the market clearing price, and as a result, the market is devoid of inventory.
Permalink Peter the Kremlinologist 
January 29th, 2010 12:21pm
+1 to the price of gold seeming to be lower than the (perceived) demand would indicate.

The math would indicate that someone big is selling their holdings.  But who?
Permalink xampl (iPhone) 
January 29th, 2010 5:09pm
>The math would indicate that someone big is selling their holdings.

Well, if that were the case, then gold would be easier to acquire in the marketplace than it is.

The IMF sold off about 400 tons of gold, and half was immediately snapped up by India, and I think China finally was "allowed" to purchase the rest.
http://www.imf.org/External/NP/EXR/faq/goldfaqs.htm
http://www.commodityonline.com/news/China-eager-to-buy-IMF-gold-for-$1000-per-ounce-24708-3-1.html

Furthermore, there have been some rumors of tungsten bricks with a gold veneer being passed around (since the density of W is within 1% of the density of Au). However there has been no substantial story. If this sort of thing were happening, there would be a shitstorm of finger pointing as these bricks weigh 400 ounces, so the difference between $10 of W and $500,000 of Au is worth hunting people down and killing them.
Permalink Peter 
January 29th, 2010 5:39pm
Tungsten $29/kg.

I find that surprisingly cheap.

So why are Hollywood film using these flimsy surrogate gold bars, when they could have rather cheap ones with the right weight?

I always thought that all really heavy stuff was very expensive.
Permalink Attila 
January 29th, 2010 5:49pm

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