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Gold bubble bursts! Prices plummet $300/oz in 3weeks

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This should mean that there will be no inflation, because if there was, gold should increase exponentially month after month, year after year. Clearly this is a buying opportunity before gold goes to $5k.
 
BoomerD said:
Because that's where it belongs...and about what it's worth once you remove the "feeding frenzy" that's going on right now.
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You dont understand worth. It's worth what one would pay. See real estate.

Now is the time to build wealth. Those that are scared will be left behind.
 
question from someone that is ignorant

with gold dropping, what are people deciding to put their money into now
 
spidey07 said:
You dont understand worth. It's worth what one would pay. See real estate.

Now is the time to build wealth. Those that are scared will be left behind.
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Are you saying that buying gold builds wealth?

EDIT: NM, silly me, i was looking at it in the macro sense (does gold build wealth overall -- obviously it doesn't). For some people it can make money, but only for those who do profit taking at the right times. In order for them to make money it has to be balanced out by other gold buyers losing money and not selling it fast enough when the price tumbles.
 
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Everything happens for a reason. QE2 ended some time ago which is the reason the stock market and commodities are both feeling the ill effects of less money to go around. I pulled my pidly investments in July and am just kind of Lol'ing at the continual slide.

Basically, so long as banks aren't lending there is actually deflation. Inflation, like everyone keeps assuming is happening, only occurs when the banks lend at an ever increasing rate, like they did for houses. Printed money doesn't account for money in the economy anymore, only debt. When the banks slow down in their rate of lending, it actually becomes impossible to pay back the loans, IE the housing market.

So what your looking for to signal the all clear is an increase in lending rate or the government doing some type of clever money printing. Gold is still subject to pain from deflation and since there are so many lemming monkey speculators who will jump ship as soon as gold takes a loss it results in what we just saw happen.
 
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spidey07 said:
You dont understand worth. It's worth what one would pay. See real estate.

Now is the time to build wealth. Those that are scared will be left behind.
Click to expand...

Ahhh yes, the greater fool theory. The funny thing about gold at this price is that it's only being supported by the same thing, leverage. Sure, it's in the form of "futures" here, but, overall, it's still a low-down no-doc option-arm mortgage for all intents and purposes. That's not even counting the fact you can go into an ETF at far lower prices than physical.

Prices are set at the margin and the margin was lowered with the ETFs. Paper is paper.

Gold's "worth" is what it can be used for, otherwise it's 100% psychological. Gold can be used for a very small amount of stuff, traditionally only 20% of total demand.

Wealth isn't built by gold, it is bought or sold through gold. As WB said, would you rather hold and build "wealth" in all of the gold mined in the world or would you rather have Exxon, Apple, Google, MSFT, IBM...etc. THOSE are wealth builders.

That's why you're not wealthy and I highly doubt any of your stories.
 
I'm out. Rode ZSL from $12.50 to $21.78. I think I got out early, but nothing wrong with taking 74% profit. Not too bad for a month's time.

Thank you silver price drop!
 
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