It looks to many people as if "gold" is getting ramped, hyped and pushed into being the next big bubble. At times like this you have to remember that many people make money on volatility, and so something has to be going up for long positions, or into bubble mode for shorts to be placed.

I have done some investigations in Asia (very simple) and I see that Gold Shops are willing to sell, but are trying to prevent people selling gold back to the shops (this is normal turnover in Asia where gold is purchased, worn and when cash needed, sold back to the shops). They are sometimes refusing to buy gold back, trying to tell people to keep on "waiting a little bit more the price will go up more, no need to sell now".

This is all bubble behaviour, and just like oil, no doubt there is a little bit more to run, before everyone starts selling their gold and creates a fall similar to oil. People do not use gold as an energy source, its has value simply as thats what people tell you, and the people that tell you have lots of gold, so its self serving, I wonder if the present "gold bubble" is actually being used by "those in control" to start selling their gold and gaining "gold for cash" - just as the average Joe Punter thinks (or is it told by the media) they should swap "cash for gold".

So the cynic in me says that presently lots of people with lots of gold and very little cash and now merrily making a bubble so they can turn the gold into cash (by getting the unwashed to use their cash to buy the gold they think will save their fortunes)

I think we are looking at an "oil bubble" type fall coming soon (within 12 months), where Gold will tumble from 1,xxx US$ to sub 500$ in a short few months as people panic trying to sell all their gold.


Some media articles on the "gold bubble".

http://www.financialpost.com/story.html?id=1310224

http://network.nationalpost.com/np/blogs/tradingdesk/archive/2009/02/18/gold-bubble-still-being-blown-up.aspx

http://seekingalpha.com/article/121250-gold-the-only-remaining-bubble

http://www.earnforex.com/blog/2009/02/when-will-the-gold-bubble-burst/

And of course, just how much is gold worth when the big powerful people suddenly say they will no longer entertain its value.

Will you eat it ? to stop starvation ?

Plant it and grow gold tree's and eat gold fruit ?

Will you put it in your car and run the car on gold ?

Or is gold simply worth nothing, its only worth something cause someone says it is.


Put it this way, if you need water and someone wants food, you can barter.

If people have food and water and you have gold (that now nobody wants) - you can do nothing.......maybe make a sword or club and threaten with it, but apart from that all your gold is useless.'

Gold was only useful as it was rare, and impossible to forge, which made it excellent for currency.

Today, currency is so much more difficult to forge that gold really is worthless, in real terms..........and I am sure the time when its dumped is not far behind the present bubbling up bubble.

Whhooaaa !...let's put the brakes on here !, gold has a lot of uses in electronics, medecine (instruments), and such for it's unique properties : it never changes form....uranium turns into lead over millions of years...and glass is a liquid metal, in fact it runs over a period of time (incredible but true)...(a thousand years)....check out windows in cathedrals (stained glass) !, but gold never changes....if I'm not mistaken I think a tiny amount is used in satellite construction, and you can go to any country in the world and they will give you something for it !.

you can't forge oil either, and it also has genuine and substantial uses and thus value ..... need i say more?

cynic,

But oil is not seen as a store of value, like gold is.

If the world economy is is such a parlous state, surely it's only logical that people will buy gold for it's value retention, and ability to be stored outside the system?

The Dow will fall to 5500 in 2009.

cynic, you just have to watch those "Mad Max" movies and "Waterworld"........welcome to the future.

Food, Water, Energy.........the only three that matter.

Andy ... i know i am probably being even more pedantic than usual, but gold only has a perceived rather than an actual value - yes, yes, yes i know its unusual properties also give it some commercial uses, but i am just trying to make a point ..... the incas also used gold in huge quantities, but were totally baffled by the "value" that the spanish invaders put on it

Video Talk
Angelos Damaskos,CEO of Sector Investment Managers and Fund Adviser to the Junior Gold Fund, warns of “gold supply crunch”
26th Feb

http://www.directorstalk.com/angelos-damaskosceo-of-sector-investment-managers-and-fund-adviser-to-the-junior-gold-fund-warns-of-gold-supply-crunch/