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Trading Gold: the last straw or ultimate bubble?

Discussion in 'Shares' started by wdongli, 7th Apr, 2011.

  1. wdongli

    wdongli Well-Known Member

    31st Mar, 2010
    Gold is up and have been up for a decade. What do you think about it?

    Gold bugs use it as evidence to claim the paper money would die. Do you buy that? Most of people still could not accept it. Me? I just could not accept it too. Some people hate the gold and hope gold to crash onto ground. Will it be true that gold would be penniless as some of my dirty-cheap fishes? It is possible but the fact that gold acted as sole medias to exchange the goods, the real money, seems tell us it is crazy too.

    Does Gold have its value? Could gold replace all of paper money? What's the basics we should be very clear in mind?

    1. gold is the natural enemy of paper money; paper money fails to beaten gold as a value store somehow; paper money has long way to go for its risk management and development stimulus role with that the economy could be developed without fear to drag the sky down.

    2. gold is an anchor in the past and foreseeable future to up/down as a natural forces to correct the craziness of the police makers around the world. It would move up and down in circle. Since it is the enemy of paper money, it would be taken very seriously by the police makers and act as the last resort to keep the value not make profit in hands.

    3. in each cycle, gold would be beaten terribly in the economic booming time, which usually is the time people has used the natural resource too much and any more resource consumption would waste more scarce resources.

    4. in each cycle, at its very beginning gold and all of resource would be underpriced since the ruins of the system crash and asset destroying. It actually happened in the ruin of the peak of IT booming.

    5. gold up would attract more and more people into or feel interest in it. Star gives the brightest light at its end. Gold looks as a star since its unstoppable upward movement.

    6. The question is not about gold ultimate bubble at moment the question is to move the economy from the ruin of GFC, how much paper money would be printed without the inflation risks and whether or not all of market players would believe the gold would be the ultimate bubble in a not too short time in the future.

    Is gold the last straw or a future ultimate? I could not see it is the last straw but a future ultimate. Why? XAO is underpriced, which shows the market sentiment is very conservative to the future. Gold sometimes move up greatly since the value of the economy are up too as a value store. Could we see the economy much better than that in 1970s? Is US worse? Is China wore? Is Japan and Europe worse?

    Are you fearful to the ultimate bubble? We should not if we hold the value with great discount which is in the dream land of gold.
    Last edited by a moderator: 7th Apr, 2011