Quote:
Originally Posted by Bill8
Oh? What's your theory? If it's a bubble pop, what's the stimulus that popped it?
The news is packed with end to end 2nd recession stories, euro dissolution, mediterrean default - not the kind of thing that one would expect to pop a gold bubble.
But the kind of thing that can provoke a margin panic among the investor class.
We shall see. I got the "sell what you can" line from the commentators - they didn't apply it specifically to gold, but gold is kind of the red headed stepchild of investing.
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When oil was at $60 a barrel then shot up to $130 over two years, what caused it to drop over the course of a month back down to $40 ? It certainty wasn't because everyone stopped needing oil lol. Oil was in demand just as much if not more than ever at the time, so why did that crash so hard.... (the hype fizzled). When the dot coms were going gang busters in the late 90s what caused them to suddenly crash back down (the hype fizzled and people realized that the companies weren't nearly worth as much as hype had built them up). Same thing for housing or anything else. I don't think it is just 1 particular world or economic event like raising interest rates or Greece having debt issues, or whatever. I think when something is hyped it can only be hyped so high then it just takes a couple of the big players to cash in, start a little tumble, others feeling "oh no, this must be as high as it will go" and they cash in. Then the panic and those uneducated people who bought in on hype shit their panties and sell, etc... and it starts a snowball, correction, bubble burst, whatever you want to call it.
You people want to make a lot of money. Figure out what the next thing is that will be hyped and buy it now and lots of it before the price go up. Stockmarket, dot coms, housing, oil, and now gold/silver has already been played out... so what is next on the list ???