Why $1,500 Gold Won’t Wake The Masses And What Will Do The Trick
Gold crossed $1400 for the first time ever on Monday. If you read this blog, you know I’ve been predicting this, as I’m predicting it goes way higher. Unfortunately, the course is set and it’s a course that is a terrible course for this country, but also a course that will force the price of gold in US dollars to go much higher.
Amazingly, as the gold price rises and crosses another $100 mark and then another, still the public largely ignores what is happening in gold. I predict that even if $1500 is crossed in a similar manner, still the public will not pay attention.
So, what will cause the public to wake up?
There needs to be a major event to wake up the public. Something like a major currency crash, or something that causes gold to spike literally $100 or more in a single day. Something big. Something to freak people out. Maybe, it is a move by the middle east to stop accepting dollars for oil? Or maybe it’s an announcement that the Chinese are no longer buying US debt and will only be buying gold. Or maybe somehow it gets out that the US doesn’t own much or any gold? I don’t know what it will be. Probably nothing any of us anticipate.
As long as gold rises methodically and slowly, even if it goes as high as $2000 or more, a majority of the public will still dismiss it. Heck, they have Dave Ramsey, the most trusted financial expert out there, telling you to sell your gold, not buy it – I love Dave Ramsey but he’s wrong on gold for reasons we can talk about later.
Again, something needs to happen in order to freak everyone out. At that point, what will happen? Well, gold will shoot to the moon of course, because finally you’ll have the masses trying to pile into gold at the same time. Physical gold will be impossible to find. This will be the catalyst for a parabolic move in the shiny yellow metal.
When that happens, I will re-examine whether or not I want to hold it. In a panic gold rush by the masses, I’ll probably unload some of my gold, but hold on to other positions.
Things are unraveling in the economy and in the world monetary system. Better get your hands on some metals now before the masses join you.
The vast majority of people don't have the faintest clue how to invest in gold. Or for that matter the money sitting around to do so.
In a REAL financial panic, they're more likely to be handing jewelery over to the Moneyz4Goldz companies so that they can buy food, or standing in line trying to get their savings out of the bank, if they have any left at this point.
This is not to say that gold can't or won't spike though. I forget the exact numbers, but adjusted for inflation it's still below its absolute high.
I haven't seen "Moneyz4Goldz" before, sounds very reputable
I don’t think the general public really even thinks about gold, except in terms of jewelry. They’re becoming a little more aware of it now though, because there are “we buy gold” signs on every street corner. (Which to me says it’s about time to sell — too bad the only gold I have isn’t something to sell!)
$1500 really?
? not sure what you're asking. If you're asking if i think itll goto 1500, the answer is yes. we'll see tho won't we.
Gold is a huge bubble that is just waiting to pop. Once anything gets so mainsteam (i.e. on magazine covers, on the nightly news, etc.), it just shouts that it is nearing its short term peak.
That is not to say that over the very long term gold prices won't rise. After all, it is a scarce resource that is becoming more expensive to extract.
I'm awake, I was buying silver (because I thought silver had better fundamentals and was more underpriced than gold, plus I couldn't afford gold) five years ago. But after i lost my job I had to sell my silver to buy food, so my knowledge is useless.
I have owned it in the past, and know several that do. My dad insists on owning gold, but sticks to gold coins, such as American Eagles.
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