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Is Gold A Bubble?


NYCguy

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Gold is absolutely a bubble. But it's not going to pop for a while. It's one of the few sure bets/safe havens in an economy where stocks are failing, bonds run risk of default, oil prices are highly volatile from season to season, indexes are flat, and interest rates on savings are near nothing.

 

Which is why I have, and continue to, advocate buying it in the short and medium term.

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What about silver? I've been hearing it is the 'new gold'.

 

Silver is a volatile version of gold that people who don't have the money to get into gold get into. It's more volatile because people are more apt to sell even when the underlying value of the precious metal is going up (in real worth, not investment worth), causing fluctuations in the price due to profit taking. Gold tends to be a buy and hold investment when other investments are doing poorly. Silver is a quicky buy and quick sell to make a quick profit, which is why the price never really goes up very fast. It's harder to time trades of silver as a result, and therefore harder to make as much money.

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