Economically we have been cascading from one Bubble to another. The first two bubbles were gold and silver, where gold reached over $800 an ounce in 1980. They crashed. The next bubble is still with us. Interest rates have been dropping for almost 35 years. This bubble has not crashed yet but it will. While this bubble has been going on two other bubbles grew and popped. The Dot Com bubble popped in 2001; the Real Estate Bubble popped in 2008. The continual drop in interest rates fed these bubbles. In fact the low interest rates have been fueling a resurgent Real Estate bubble. The rates are not just low; they are not just at generational lows; they are as low as they have ever been in history.
This one's gonna blow.
Really there are no investment choices, so you gamble. But only do this after you have done the pre-investments I mentioned in a previous blog post.
This is where the following video comes in. Rather than talk about the intrinsic value of gold—nonsense…it has no such value—it admits that gold is once again a bubble. But we may be early in the bubble process. If so, now is the time to buy.
So join the other punters at the Casino. Yes, there will be a jackpot for somebody. Just hope, or dare I say it, pray, that the dice are not loaded. Remember that if you are at a gaming table, or in a business deal, and you do not know who the sucker is, it is probably you.