Quote:
Originally Posted by Bill8
It does sound like you could make the argument that the hedges funds blew up gold with the idea of ripping the profit out of it after all the suckers bought it at high prices.
So, it's not impossible this is a bubble pop. But, too early to tell, Bubble could reinflate, too - like harvesting honey from a hive, then letting all the little guys bid up the value again, and harvest it. A pretty trick, if true.
I wonder what the value of 9% of gold happens to be? Thats teh profit the big guys took last week.
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you don't need to read through pages to see that. When people start posting on GFY about how everyone should buy gold, you cant lose... your neighbor tells you he is buying, your friends in your fantasy football team etc... I think it's safe to say the "uneducated" are really buying into the hype. When ANYTHING gets to the point that hype is getting people involved that don't know what they are doing it drives up the price, but those same amount of people will be the first to pull out as soon as it starts to drop. The smart people will sell out when they think the hype has gotten high enough for them to cash in. It's all very simple, common sense.
Too much hype too many people got involved with gold over the last couple months because of the hype and because they thought they couldn't lose and wanted to make fast money. Now they scared to death that they might lose little johnny's college fund as they invested money they couldn't afford to lose. The price goes down, these people will sell they not in it for the long run like the people who bought before the hype.
You would be amazed at the people who started trying to flip houses back in 2004/05 who had no clue what they were doing but they knew people making thousands from it. Or the people who started pumping every penny they had into the stock market back in 1999 when they knew nothing about stocks... gold this time around is no different.