I have been a believer for a long time that Gold Prices were reaching bubble status. Today's pop did nothing more than confirm that there are still 2 types of reasonable people in the world. Those that take profits, and those that refuse to buy shit.
Now just to be clear the bubble didn't pop, today. There are still insane people that think that Gold will protect them from inflation, or a recession, or a slow growth economy. And they will say gold is at a discount today.
However, Gold is the most inflated commodity over the past few years. Which is a good thing because if wheat inflated like gold people would starve and if gas inflated like gold we'd be doing a lot more walking.
Nevertheless, when I'm looking to buy a growth company I look at companies with growth potential. Think Amazon back-in-the-day. I don't look for companies that have experienced so much growth they are now the industry leader (Think Amazon in recent times).
The same is true for gold. We cannot depend on gold to be correlated with inflation, a recession, or a stagnate economy. It is simply a whimsical investment vehicle, for people to store cash until they realize gold has little to no intrinsic value.
Eventually, everyone will come to realize that gold is the most useless commodity of all. Just like they did in the '80s.
If you want my advice: Cash for Gold. Cash out now before its too late.
If you want my advice: Cash for Gold. Cash out now before its too late.
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