I came across these charts on APF, suggesting the price of Gold might be in a bubble.

But the question is, at what stage of the bubble?

australianpropertyforum.com/topic/9907660

i187.photobucket.com/albums/x308/LPShadow/Gold_Bubble_Two_Views.jpg

It may be going the  same way of frankincense and Myrrh

The gold bugs talk about two things:
Is the GFC over? Is the US dollar losing it's reserve status?

Countries are bypassing the US dollar:
- BRICS nations trying to setup their own banking system.
- Libya and Iraq were trying to get onto the gold Dinar currency. [Citation needed] Which is yet another reason for their invasion.
- The whole point of the reserve status for the dollar apparently, is the "petrodollar". People  receiving petrodollars/US currency in the oil trades.
- You have countries also like Iran trading it's oil away from the US dollar. Australia signing agreements with China. It's all happening, slowly but surely. (Syria too)

You also have the massive debt of the US, that it will never be able to pay back. So all currencies tied to the US when it sinks, will most likely go with it.

People thought the world would end if gold hit $1000, it was thought impossible.
Silver is apparently a sleeper with all it's industrial uses and scientists saying it will be the first element on the periodic table to go extinct (from a certain perspective).

So if you are into conspiracies the sky's the limit, if not then it's in a bubble.

Vuk11 wrote on Sep 9^th, 2013 at 5:39pm:

The gold bugs talk about two things: Is the GFC over? Is the US dollar losing it's reserve status? Countries are bypassing the US dollar: - BRICS nations trying to setup their own banking system. - Libya and Iraq were trying to get onto the gold Dinar currency. [Citation needed] Which is yet another reason for their invasion. - The whole point of the reserve status for the dollar apparently, is the "petrodollar". People  receiving petrodollars/US currency in the oil trades. - You have countries also like Iran trading it's oil away from the US dollar. Australia signing agreements with China. It's all happening, slowly but surely. (Syria too) You also have the massive debt of the US, that it will never be able to pay back. So all currencies tied to the US when it sinks, will most likely go with it. People thought the world would end if gold hit $1000, it was thought impossible. Silver is apparently a sleeper with all it's industrial uses and scientists saying it will be the first element on the periodic table to go extinct (from a certain perspective). So if you are into conspiracies the sky's the limit, if not then it's in a bubble.

Q) Is the GFC over?
A) No, not by a long shot!

Q) Is the US dollar losing it's reserve status?
A) Yes, But it is being propped up, for now, by "vested interests", both in the US & Globally!

Q) - BRICS nations trying to setup their own banking system.
- Libya and Iraq were trying to get onto the gold Dinar currency. [Citation needed] Which is yet another reason for their invasion.
- The whole point of the reserve status for the dollar apparently, is the "petrodollar". People  receiving petrodollars/US currency in the oil trades.
- You have countries also like Iran trading it's oil away from the US dollar. Australia signing agreements with China. It's all happening, slowly but surely. (Syria too)
A) Yes, Brics, the Arab Petro heads (at least some) & Russia, with the Chinese playing games all over the place!

Q) People thought the world would end if gold hit $1000, it was thought impossible.
a) It wasn't impossible, it nearly hit $2,000 at one point AND WHEN THE PROVERBIAL HITS THE FAN AGAIN & THE us$ FINALLY TANKS, i WOULD SUGGEST gOLD WILL SURGE AGAIN, WELL PAST $2,000!

Gold going to $2,000 is not correct.

The cost of mining an ounce is about $1,200 & that is what sets the real price.

Bobby. wrote on Sep 9^th, 2013 at 10:15pm:

Gold going to $2,000 is not correct. The cost of mining an ounce is about $1,200 & that is what sets the real price.

What he is saying I think, is if the US economy and by extension the US dollar collapse, the cost of commodities would soar.

The reason it would soar wouldn't have much to do with mining costs, rather the value of the dollar being worthless. So any currency pegged to the Dollar would become as worthless as it's reserve.

Interestingly if that were to happen, a lot of people seem to think that our housing bubble would burst drastically reducing prices. Interest rates would be ridiculous, so people would default on loans and be desperate to sell off their house to escape the debt.

You wouldn't be paying workers, hence no mining, which means less supply. In times of currency crisis' Gold is something people jump to, to hedge against inflation. So that would drive up commodities as well.

All of this is only if there is a collapse. I'm probably wrong on a few things there.

Vuk11 wrote on Sep 9^th, 2013 at 10:25pm:

Bobby. wrote on Sep 9th, 2013 at 10:15pm: Gold going to $2,000 is not correct. The cost of mining an ounce is about $1,200 & that is what sets the real price. What he is saying I think, is if the US economy and by extension the US dollar collapse, the cost of commodities would soar. The reason it would soar wouldn't have much to do with mining costs, rather the value of the dollar being worthless. So any currency pegged to the Dollar would become as worthless as it's reserve. Interestingly if that were to happen, a lot of people seem to think that our housing bubble would burst drastically reducing prices. Interest rates would be ridiculous, so people would default on loans and be desperate to sell off their house to escape the debt. You wouldn't be paying workers, hence no mining, which means less supply. In times of currency crisis' Gold is something people jump to, to hedge against inflation. So that would drive up commodities as well. All of this is only if there is a collapse. I'm probably wrong on a few things there.

No, you're reasonably close to it!

IMO the word "Bubble" has been flogged to death,  and is about the most over used word in economics.

With the price as virtually static for a year or so,  and up and down like a harlots pants, and less than 1% of the general population actually buying and holding the stuff,  it is NOT in a "bubble".

Wait until SHTF Day,  and you will be amazed at what gold (AND SILVER) is going to do.

JMO


OC

https://www.youtube.com/watch?v=iuchdOO_eS0

Wall Street Whale Makes HUGE BET on $4,000 GOLD - Bob Kudla