I have a long-running debate with a couple of people elsewhere on the Internet over expectations for the prices of gold and silver. I won't rehash that debate here because it's really quite dull, but I'm bearish on both, despite the current behavior of our Federal Reserve, which I'm sure I will elaborate upon (rant over) in many a future entry.
I bring this up only because, whatever ultimately happens to gold and silver, the behavior of their buyers is definitely the behavior of people participating in a classic bubble. Which I find very interesting because it happens over and over. This time is always different. Dutch tulips, exploring the South Seas and the Mississippi, selling pet food on the Internet, tiny rows of houses in the desert or the swamp - it's always a new paradigm. Humans are driven to think that they and their times are unique. But they never are.
For your viewing pleasure: Case-Schiller (the housing price index) as a rollercoaster, 1890-2010:
2 comments:
The biggest question I have about gold and silver- and one I will address in a post soon- is what exactly you are supposed to do with all your gold and silver if and when the fabled hyperinflation comes. Sell it for useless dollars? Ty to use it as money? Considering the probable effect of hyperinflation in the United States on the fabric of civilization, I think ammunition might be a better investment.
Exactly my thoughts.
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