svosavvy

No Gold Bubble

I have the greatest confidence gold could still see plenty more short term upside hence "bubble" filling with air, and I believe when inflation actually shows up gold may be a good hedge. Until then I think it's a trade not an investment. Wealth destruction is occurring to equities. We are in a "deflationary spiral" and each new shoe to drop only speeds the tailspin. Gold the classic inflation hedge is rising against the dollar (unnatural), this imho is "irrational exhuberance". But "markets can stay irrational longer than a person can stay solvent" I'm staying out of gold in short term unless we see big spike real near term like $1250 then I'll get negative. If you want an inflation hedge find a nice well managed company that pays a good dividend, then hold your nose and average into their smelly common stock. I find "safe havens" to be a bit redundant, like your mother always said would you jump off a bridge too if everyone else was doing it. And as far as the authors bubble tenets from above, everyone IS talking about it, gld is turning into a bloated turd. Every muckety muck financial guru on tv is high on it, even that susie orman. Then author goes on to say the hedge funds are buying, let's see, a hedge funds have never made a bubble before have they:) cheers