RGacky3
27th January 2011, 14:59
dol1oj3422U
This is what I've been saying to the Gold-Standard-everything-is-the-fault-of-the-fed types, many of whome will say that GOLD is where the real value is, put your trust in Gold, the more sophisticated of them will say put it in commodities, because commodities are always safe.
Heres what the fail to realize, just because something has real value behind it does not mean that the value cannot be over inflated into a bubble, when people start speculating on commodities or gold, they arn't waiting for a return based on production or sales or whatever, they are waiting for a return by flipping the securities for a profit, they are speculating on the price.
Commodities ARE NOT FOOL PROOF, when the prices are inflated beyond their value thats a bubble, there is no intrinsic value in gold except for what people pay for jewlery, buying blocks of gold with the hope that you'll sell them for a profit is no different than if you did that with stocks, CBOs or whatever, its speculation.
Given the run on commodities and even metals I'm guessing theres a definate bubble.
I love when those Gold guys show me how the price of gold has gone up so high, as if the supply and demand and labor costs and capital costs of gold has actually gone up.
This is what I've been saying to the Gold-Standard-everything-is-the-fault-of-the-fed types, many of whome will say that GOLD is where the real value is, put your trust in Gold, the more sophisticated of them will say put it in commodities, because commodities are always safe.
Heres what the fail to realize, just because something has real value behind it does not mean that the value cannot be over inflated into a bubble, when people start speculating on commodities or gold, they arn't waiting for a return based on production or sales or whatever, they are waiting for a return by flipping the securities for a profit, they are speculating on the price.
Commodities ARE NOT FOOL PROOF, when the prices are inflated beyond their value thats a bubble, there is no intrinsic value in gold except for what people pay for jewlery, buying blocks of gold with the hope that you'll sell them for a profit is no different than if you did that with stocks, CBOs or whatever, its speculation.
Given the run on commodities and even metals I'm guessing theres a definate bubble.
I love when those Gold guys show me how the price of gold has gone up so high, as if the supply and demand and labor costs and capital costs of gold has actually gone up.