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lol yeah it looked like i brought up the futures the one time when they were rallying randomly in the middle of the night.
I've said this more than once on here, before it is all said and done gold should be above $3,000. Possibly $5,000. Now if you are a trader it may be time to take some profit, but the risk is there may be lesser and lesser dips to jump back in. Gold is a bubble in its infancy, maybe adolescence, but definitely not of old age yet. When your neighbors and relatives are conversing about gold at dinner parties, that is when the bubble pops. If you are in, it is better to just hold on for those who are not traders.
How many people do you know who actually own physical gold or other precious metals? When a ton of them do, then you know the bubble is close to bursting. It will pop, but I think it has a long way to go first.
http://online.wsj.com/article/BT-CO-20110808-713367.html?mod=WSJ_qtnews_wsjcomp According to JPM, $2.5k/oz. S&P 500/Nasdaq down 6%, Dow over 4.5% around 10,900. Brutal day.
From our perspective, it really was. For the guy who earns $1/day to feed his family in a third-world nation, it was just another day.
When everybody is pimping one type of investment, you know it is running out of steam. Buy the fear. Edit: Late day rally?
Talking about oh darn we wish we bought some, or gloating about owning it? Selling gold right now is like selling tech stocks in 1998. Is it overbought? Probably. Are you late to the game? Most definitely. Is it doomed to crash back down to earth, or even lower? Even I would guess, yes. But had you only waited another year or two, you would be fair bit richer. Bubbles are the craziest, and most profitable, when they get to their tail. Let it get there, instead of selling yourself short.
That tells me there seem to be a lot more pent up demand for it then. If people are asking "how to invest in gold", that means they haven't yet. When that becomes the #1 search result, and when those people actually start acting on it, there will be your makings of the final bubble. When the tech bubble burst in 2000 people weren't asking how to invest in .coms. They already did it, and were boasting about it. When the real estate bubble burst in 07, people weren't asking how do I buy houses, they already bought 7 lots trying to flip them, before getting stuck with all of them. I want to literally see a Bullion ATM on the streets, with people lined up behind it, before I sell my gold. Until then, nothing has changed the past 3 years(or 10), so still buying dips.
how do you know when it gets there? how did you know the housing bubble wasn't going to burst in 2008 instead of 2007?
I see no signs of a bubble for gold yet, just a bull market.(the lone bull market) Either technically speaking, historically speaking, or just based on the little quibs I've been mentioning. As for the housing bubble, I knew it was going to burst when I went to buy an apartment. It was newly built, there was a line at the front office for it, where you had to fill out papers. The building was mostly sold out. It was getting pretty late, yet almost no lights can be seen from outside. I asked the guy and it was because nearly the entire complex was vacant, 80% were "investment housing". I left and decided to rent. To be honest, timing the housing bubble is definitely tough, since real estate is not a liquid asset that you can just get out. But for stocks and commodities, it is much easier to take advantage. At least you can chart them and have a much better idea than judging based on how many lights are on. Learn some technical analysis, and get out when the charts start breaking down. Or at least just set a stop, instead of bailing out when the going is just starting to get good.
And the short answer for this is, you know when it gets there by living through a couple of them. I was lucky enough to start trading in 1997. And lucky enough to lose over 90% of what I was trading with when the .com bubble burst. And I don't mean that sarcastically, because that is what teaches you what a bubble, and what a bubble about to burst, looks like.
So can you help cut down some wasted time/money on google searches and offer advice on how to invest in gold?
