Friday, February 24, 2012

There is An Obvious Bubble in Gold (or Not?)

CrushTheStreet.com has interviewed pedestrians in California following the Gold Bubble talks and asked them if they purchased Gold in the last year(s).

There were too few people in this video to make it statistically relevant, but still, none of the persons interviewed purchased Gold, although some bought Gold stocks (which they already sold) and one bought Silver.

It's quite difficult to have a bubble when there are few buyers. In 2000, during the Nasdaq bubble, individual investors' behavior was much different. I remember Marc Faber saying that during a new year party in 1999/2000, a woman asked him what he would buy. He answered that he liked treasuries, and the woman replied that treasuries would only return around 6% per year, whereas she could get 10% to 20% day-trading on tech stocks.

1 comment:

  1. For instance, the growth of the gold price to almost $1,380 in mid-March 2014 was in particular attributed to the Russian invasion of Crimea. additional resources

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