Gold is the New Dot-Com

-
History has a funny way of repeating itself. In the mid- to late-1990s, was we saw the Dot-com Bubble with internet companies with stock valuations that simply could not be justified by their fundamentals. I believe that we are seeing the same thing today with gold prices.



From 1973 - 2005, gold traded in the $200 - $300 price range on a fairly consistent basis. In 2005, it began its surge upwards, with the real momentum beginning in 2009.

Gold is currently trading at more than $1,600 per ounce, which is roughly 4.5 times its historic norms. Things are far from ideal in our economy or political sphere. However, there is simply no economic rationale for gold any higher than $700 - and even $700 per ounce is pushing it, in my opinion.

I'm not ready to start shorting gold yet. I believe it will likely stay in the $1,600 - $1,700 price range for the next few months as various problems work themselves out, most notably Europe's debt crisis. However, I believe that gold is headed for a major correction in months ahead.

And when one looks at far this has to drop, I believe it's going to be a painful drop for a lot of people.

It's 1999 all over again. Gold is the new dot com.

Comments

Post a Comment

Popular posts from this blog

Hayley Williams Flashes Twitter

-
Image
I have to confess, I had no idea who Hayley Williams  was prior to this morning nor did I have any idea who the band Paramore was. In fact, now that I do know, I'm not all that certain that I really care about Paramore. But I digress. The thing is, sometime last night, Hayley Williams' Twitter account was reportedly hacked. This resulted in a photo of Hayless Williams topless making its way onto the internet. Hayley Williams insists that it was a simple security breach. Personally, I can't help but feel that this smells too much like a publicity stunt. Either way, the photo is out there and a lot more people suddenly know who Hayley Williams is - coincidence or not. Oh, and yes - it has taken an enormous amount of restraint for me to not show the uncensored version of that photo.
Read more

Bikini Hero

-
Image
I was surfing the web last night, looking for more news on Kristen Bell . I came across this post on TMZ.com about Kristen at the beach . They were critical of the photo of her to the left, but admired her in the one to the right. I don't care what the folks at TMZ say. Granny shades or not. Hair up or down. Kristen Bell looks darn hot.
Read more

33 Women in 2 Weeks?

-
Image
James Hunt James Hunt  was the Formula One champion in back 1976 - a time long before I was paying any attention to either women or cars. According to a new biography by Tom Rubython , during a two week binge while in Tokyo that year, James Hunt and his friend Barry Sheene  each had sex with thirty three different flight attendants. And yes, that's thirty three women each. Over the course of fourteen days. An average of a little more than two stewardesses per day. James Hunt and Barry Sheene set the bar high (or low) for an outstanding summer vacation.
Read more