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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: sixty2nds who wrote (10400)	10/24/2025 11:52:25 AM
From: Sun Tzu	1 Recommendation Recommended By sixty2nds Read Replies (2) \| Respond to of 10488

I make it simple with regards to gold. Gold went up on the back of central banks buying and the debasement trade. Using real assets to hedge the currency debasement has been the issue that I have discussed extensively. So that was the time to buy gold. Then the general public got to hear about the debasement trade after the central banks stopped buying and gold shot up parabolically. You can see this bubble very clearly when you look at the volume. The volume held steady (more or less) as gold went from 2000 to 3000. But once the speculators got involved the volume went parabolic. That is nuts. It means gold is in a bubble. My definition of a bubble, especially when comes to commodities, is that demand goes up because the price goes up. This is the opposite of what normal economics tells you (that demand should go down the higher the price). Hence the bubble. Saying that gold is in a bubble doesn't mean that it is going to crash any day now. For all I know it could go to $5000 before the musical chairs game begins. Often times the most profitable part of a bubble is its late stage. Just think of the internet bubble. The stocks were in a bubble in 1998 already. But then in 1999 they partied like the world is about to end (and it did). If you said it was a bubble in 1998, you'd be right. But if you didn't buy or worse shorted them, you'd been wrong. That's where we are with gold today.