Why do mania's happen? People go crazy with greed. It's human nature. If you want to make serious money you need to take advantage of this. This is a chart of bitcoin and the mania that occurred. If you bought $27 worth of bitcoin in 2009, it would have been worth $2.1 million by November 2013. I don't think gold will appreciate as much as this, but this is an example of the end phase of a bull market.
This is a chart of the last gold bull market in the 1970's. I'm speculating of course (that's what I do) but I believe we are at a similar point to the second half of 1976 when gold was at $100. Gold went parabolic (a mania) in late 1979, as bull markets tend to do in the final phase. Gold has been in a bull market since 2001 and we have not yet seen the mania, the final phase...
In the last gold bull in the 1970's a similar thing happened, gold sold off from $200 to $100. Many people thought it was expensive at $100, having risen from $35 from the late 1960's. Gold then rose from $100 to $850 over the next 3 years. I think a similar thing is going to happen mainly due to the expansion of the supply of money. If you remember what a dollar could buy in 1970 compared to what it can buy today...all caused by so many dollars. Why do people buy when expensive but won't buy when it's cheap? That's human nature for you and it happens all the time.
Chart showing gold bull of 1970's...(and what happened after) I believe this will happen again over the next five years, you have to make up your own mind about this, but when billions of dollars are printed, gold and other hard assets will eventually respond. That's my theory anyway.
This chart compares gold to the US monetary base. The interpretation is that gold is cheaper than at any time during the past 100 years! The current reading is 0.4! When it climbs back to the 4.0 zone, (10 times today’s gold price), it will be time to sell gold and look for something else.
When you think about it (I try not to) nothing is really something. What is there in deep outer space for example? Nothing, but wait, there is background radiation from the Big Bang, which, incidentally, prevents "absolute zero" (0 K on the Kelvin scale, which is a thermodynamic (absolute) temperature scale; and -273.15 °C) and results in the temperature being about 2-3 degrees Kelvin.
Yes well said, my forecast from my own research is Gold $5,000 and Silver $100 in the next 3 - 5 years. I hope I am right, but forecasting price direction is not easy; I have been wrong over the last 3 years (cost me an arm and a leg)
But nice to hear from you lifeisadream. See how we are going in 3 to 5 years, if I am right I should make a small fortune.
Yes we may go a little lower, but if we have not hit $1,000 by August I reckon the bottom is in..buy gold coins or your favorite gold stock. $5,000 per ounce is in the bag over next 3 - 5 years..(don't forget to sell though)
itsimpossible Forum Posts (777)
Is Gold a Buy?
Why do mania's happen? People go crazy with greed. It's human nature. If you want to make serious money you need to take advantage of this. This is a chart of bitcoin and the mania that occurred. If you bought $27 worth of bitcoin in 2009, it would have been worth $2.1 million by November 2013. I don't think gold will appreciate as much as this, but this is an example of the end phase of a bull market.