Saturday, May 22, 2010

Gold Bubble

For those of you too young to remember, I am gonig to give you a quick history lesson regarding bubbles in gold and silver.

Back in the old days when there were spikes in the price of silver, people were actually selling silverware and other silver items just for the money they could get for the silver content.  Of course this was pretty silly because most of the time the value of the item sold, silverware, for example, was worth considerably more than what you could get by melting it down.  But people got swept up in the excitement.  And, invariably, the price of silver dropped dramatically shortly thereafter.

What do you see on television today?  Adds for you to send in your "unwanted" gold jewelry and you will be paid for the gold content.  Sound familiar?  This sounds to me like we have hit a bubble just like we have done with silver in the past.

Be forewarned.

And, vaguely related, I believe that watching too much History Channel changes your brain, much like reading too much National Lampoon and Mad Magazine once did.  Ancient Aliens, anyone?  I mean, How else could the ancient Egyptians have lit the inside of their pyramids other than by electric lights?

And what does "proof by indication" mean, exactly.


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