This hillbilly predicts Gold Bubble will burst soon.

[Missourian]

What do I base this revelation on?

You may not remember the scrap metal bubble of 2005...you city folks probably missed it altogether...but every telephone pole in Missouri was festooned with freshly printed fliers announcing "We pay $50/$100/$150/$200 for scrap cars" and everyone bought a 16 foot trail and scoured the back roads for any rusting hulks in yards, fields, barns and bushes...and just about that time...when everyone had heard about the hidden treasure of scrap metal...the bubble burst and scrap metal prices plummeted.


But surely you remember the height of the Housing Bubble...every other commercial was "Learn to flip houses and become a millionaire"?

And everyone was doing it...driving housing prices up higher and higher and higher...until THAT bubble burst.


And the stock market bubble...stock prices kept going higher and regular folks were buying in at hyper inflated prices believing that they couldn't lose...right up until they lost.



Well now every other commercial is "Send us your unwanted gold and we'll pay you cash" or "invest in gold with Goldline/Roseline/Gold Connection/Fill in the company of your choice"...even the local guys are getting in on it now, my local Springfield gold buyer is running a TV commercial asking "Why send your unwanted gold away in the mail...bring it to me."

Gold prices are at record highs and everyone wants in.

Everyone is talking about it...everyone is advertising buying or selling...and when everyone knows something the bubble is right on the verge of bursting.

Now like I said, this is just one hillbillies opinion...but if I owned gold as an investment...I'd get out while the gettin's good.

 

[Modbert]

[ame=http://www.youtube.com/watch?v=Uzae_SqbmDE]YouTube - Deliverance - Banjo Duel[/ame]

 

[RodISHI]

Can't eat gold.

 

[Oddball]

Can't scoop up your dirt and get the hell out of Dodge, should the occasion merit.

 

[Neubarth]

Gold is just a pretty yellow metal. It is worth whatever people are willing to pay for it. Ya can't eat it, and if food becomes scarce food then becomes more valuable than gold. That is not by unit of measure, just unit of need.

 

[Missourian]

Here's an article about the scrap metal bubble for those of you who missed it:

This Is Not Your Father's Steel Bubble

By Andy Serwer
January 26, 2004

(FORTUNE Magazine) – It may seem ironic, or poetic, or even just fitting that almost four years after the bursting of the new-economy bubble, the oldest of old-economy industries, steel, appears to be positively frothy. Steel? It hasn't had a good year since Andrew Carnegie was building libraries, right? Well, hang on to your hardhat, because steel prices--and the prices of steel company stocks--have been going gaga over the past 12 months. The question then is, Are we looking at the next mania? A steel bubble, of all things?




Let's look at the evidence (while acknowledging that the notion of a steel bubble makes for a great visual). First, the numbers: The price of steel scrap from auto production climbed a stunning 69% during 2003, to more than $215 a ton. This past June domestic hot-rolled steel was going for $260 a ton; now, for April delivery, the price is $410 a ton. Then there are the stocks. Good, old (well, old, at least) U.S. Steel's stock (X) has gone from $10 to $36 in less than a year. And how about scrap dealer Schnitzer Steel of Portland, Ore.? Its stock has rocketed from $10 to above $50 over the past 12 months. There was recently even a red-hot steel IPO: International Steel Group (ISG) is up more than 50% since it began trading in mid-December.

This Is Not Your Father's Steel Bubble - January 26, 2004

 

[Toro]

This thread is about two months too late.

http://www.usmessageboard.com/economy/94569-the-gold-bubble.html?highlight=Gold+Bubble

 

[Valerie]

I agree.

Another factor is the mine production is bound to increase soon.

Demand and supply
As is true of all asset prices, gold's price moves in response to the changing balance between supply and demand. Mine production is relatively inelastic due to the long lead times that exist in gold mining, which explains why the rally in the gold price since 2001 has still not engendered an increase in production levels. Meanwhile, demand has shown sustained growth, due at least in part to rising income levels in gold's key markets. This has created the foundation for the most positive outlook the precious metal has known for a quarter of a century.

Uses & Applications > Utilise Gold. Scientific, industrial and medical applications, products ,suppliers from the World Gold Council

 

[JWBooth]

Followed by other commodities?