DeepValueLover's  Instablog

Send Message
Building wealth intelligently and patiently is the most logical and tested route to financial independence. That is my plan and so far, so good! (WARNING: Do your own due diligence and don't depend on me or anyone else on SA to offer sound investing advice. My recommendations are for... More
My company:
The Asset Protection and Distressed Investing Guide
My blog:
Using Options To Hedge a Portfolio Correctly
  • Gold is NOT in a Bubble...Dollars are the Bubble! 0 comments
    Oct 14, 2010 1:12 PM | about stocks: GLD, SLV, AAPL, SIRI, DBA, C, BAC, KO, PEP, INTC, MSFT
    Our recent real estate bubble then crash was not due to the fact that land area remains constant.

    It was due to easy money property speculation, banks who loaned money to people who never should have been allowed in the lobby (as poor as their credit was) and, most of all, banks who wrote loans then sold them off to investment banks and insurance companies so that they could be "securitized" then passed along to other suckers and so on.

    The real estate boom was built on a house of sand and fog.

    The value of gold, silver and other precious metals remains constant. It is the value of the dollars that they are priced in that fluctuates.

    When you make more of something the already existing units of that something are worth less (dollars, for example).

    If a miner found a deposit of gold equal to the amount that has already been mined all over the globe, then the price of gold would be cut in half immediately. It is a simple matter of supply and demand.

    What you are seeing with the precious metals is not a bubble or a is merely a reaction to the intense money printing done by central banks around the world.

    Here is an experiment for you:

    Go out to the street and offer someone a choice between $1374 or the amount of cash (in dollars) of one ounce of gold as it was priced in 1998 (only 12 years ago).

    People who understand the relationship between gold prices and inflation may counter by giving you a one ounce gold coin as an even trade. ;)


    Disclosure: Long Real, Sound Currency
Back To DeepValueLover's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • $SHLD is approaching Zero Hour. Look at the bonds...
    May 12, 2016
  • So, for the first time, I went in for a LOT of ITM $SHLD puts. They are expensive but they WILL pay off. SEP16 @ $20.
    Feb 9, 2016
  • $XCO having a MASSIVE short squeeze right now...WOW!
    Jan 26, 2016
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.