Will Gold Now Become A Bubble

Will the ECB printing $1 trillion dollars in EUROS be the catalyst to take gold to bubble status? In order for something to become a bubble it needs to appeal to the masses and has to be catchy and easily understood like "The Internet Is The Future". I could just see people saying "You can't print gold". This is something that the masses can understand and I would not be surprised to see a fabulous rise in Gold. But for some reason I can't bring myself to buy any.

3 comments:

PJ said...

I'm in the same boat, I'm trying the tactic of just buying gold for a trade when I think we're about to see some kind of bailout / manipulation /market rescue. It seems like every time that happens gold soars, as it did early this week.

But gold's future all depends on whether central banks start monetizing debt. If they do, gold goes to the moon; if they don't, it follows commodities and stocks down.

Of course monetization would be an economic catastrophe, as Weimar Germany showed, but who knows with this crew. They seem desperate to prevent anyone from failing. They may impose a horrific cost to delay failure by a few months.

Enronium said...

Good mines are being depleted. New mines are technically challenging and low grade, realistically all-inclusive costs are about $1,000+ an ounce, so you aren't overpaying.

Enronium said...

Oh, and central banks are running out of gunpowder, so hurry up! ;)