Worried Yet?

  • national debt

Info

« Debtor-Prison Nation | Main | Reverie »

02/24/2013

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d83452719d69e2017c37128a5c970b

Listed below are links to weblogs that reference Are Bling Gold Parties a Sign of a Bubble?:

Comments

"If you get financial recommendations from blogs, please stop now and just give me your money."

LOL!

Gold seems different, I think. Much less credit to drive it; it can rise on fear as well as greed (although I've always thought of investment greed as a fear of being left behind) - especially inflation fears; commodities are rife with wild swings; central banks buy and sell it in cycles (buying right now); it has a reputation as money as well as an investment; hedging by companies who use the stuff can add to the volatility.

Could it be that gold's conservative bent might make the Nebraska rule work in reverse? If it plays in liberal, Keynes-worshipping strongholds like NY and CA we're near the top? However, one would think we're closer to a top when considering the Richard Russell favorite, the Dow:Gold ratio which is getting down there closer to 1:1.

Even if this were a bubble, I would treat gold like I always have based on advice/research I read years ago from a very reputable Canadian trading firm: gold should be 5%-15% of one's portfolio.

I don't suppose they take cubic zirconia, though...

Eric--Good point on credit to buy gold. I haven't looked into this, but my assumption is people don't borrow on their accounts to buy gold.

As for the Keynes-worshipping thing, how many people who are having these parties even know who Keynes was? They barely could tell you what a supply/demand curve should look like.

Good rational on gold in the portfolio. Of course you didn't get that from a blog. :)

###

Sure, as long as the stone (is it still called a stone?) is on a gold band.

###

"As for the Keynes-worshipping thing, how many people who are having these parties even know who Keynes was? They barely could tell you what a supply/demand curve should look like."

My perception is that gold is popular among conservatives for various reasons. Those who know Keynes would more likely be rich liberal and, holding such knowledge and living in locations with environments designed to downplay gold (pro-gold articles & ads are more red state / anti-gold articles & green investment ads are more blue state), would loath the "barbarous relic" and refuse to invest in it until later in a bull market.

When I write later I mean a palpable feel of inflation which even the liberal couldn't deny, along with a noticeable rise in the metal price which even they couldn't ignore (this gets back to investment greed - that fear of being left behind). So, the liberals would be the late-comers to the gold bubble? Or maybe no amount of inflation/gold gain could break their belief system and the gold bubble rises and falls without them. In which case your gold party indicator is correct. :>)

The comments to this entry are closed.

Follow Us On Facebook!

Twitter Updates

    follow me on Twitter

    More