Topic: Gold bubble and Economic situation more what to expect (Read 570 times)

I don't intend to discourage you buying precious metals like gold but doesn't it affect your view on it since the cryptocurrencies are considered to be the most new and anticipated economic class today? Gold price is noticeably high but is dumping for the past months on which I can say that gold's value is weakening and cryptocurrencies are getting the real deal although bitcoin dumped for about 12% in 2 weeks after getting hit by 10K range. I remember a video that I i've watched long time ago that China is keeping and storing gold to gain the strongest economy from the U.S.A, I guess it is the time to believe on that one since oil production is getting low.

Green green grass of home lol. It is not only in the green trees that you'll get a relaxing eye view but also in green portfolio, so true.

Depends on your origin but I will say this is not the best.Most countries facing economic slow down which also impacts the real estate investments as well.

And for your question in OP now you got the answer now,most people moves to golf when corona crashes every other market so it is really safe heaven for now.

If we talk about investment then real estate is best

TBH I’m fairly happy with the precious metal I acquired months ago, gold might be dumping and I’m having loss profit, but comparing to the investors who’s trading the DOW and facing wild correction, having green colour in your portfolio seem to be the only god sent gift in your life.

Indeed it is knowledge and information

But this is just another level of generalization and abstraction. In this case, the knowledge and information about when the gold bubble is going to pop or whether there is a gold bubble in the first place at all will help help you make an informed and balanced decision, for example, to sell your gold if it is indeed a bubble or, on the contrary, to buy more of it if it is not. The point is, telling that knowledge and information are the key to safe heaven is essentially telling nothing as it always comes down to obtaining correct information and possessing deep knowledge about something

Gold is scam!!!
Btc is scam!!!
Even oil is scam!!!

Best and non scam Investment is Real Estate!!

That's how it is!!

this is because of the trust factor, when the bitcoin trend is bullish, it will be able to soar very high, then it can also go down very deep. different from gold, which has fluctuations that tend to be more stable, and I think for the security of funds, gold is superior, because it is recognized by everyone

I think that on the contrary, gold has much better security for the money invested than Bitcoin, not to mention other cryptocurrencies. Gold has shown more or less stable performance over a long time, but BTC may rise to 20,000, and then fall to 3,500.

Undoubtedly, you have a very good opinion and I completely agree with your statement regarding the difference between bitcoin and gold.  But today you need to take into account the real physical value of gold and bitcoin, as well as their stability.  I’m saying that no one disputes the value of gold and it will not decrease under any circumstances 1000 times, but the situation with Bitcoin is completely different.

In my opinion the gold Price is just manipulated.
Gold Can't Stay too Long like this!

This is what paper gold does , whopping 542 ounces in potential paper claims to every ounces of physical gold.

This is what paper gold does , whopping 542 ounces in potential paper claims to every ounces of physical gold.

This is what paper gold does , whopping 542 ounces in potential paper claims to every ounces of physical gold.

I would write it three times, because nobody want to read the title and they just want to leave a comment without going through wall of text.

 Also blockchain has a bit more transparency than gold. Sure you can't ever know who owns what exactly, and there are a million ways to hide your wealth etc etc, but the reality is a person can buy a billion dollars worth of gold and put it in a vault and keep it there whereas when you buy a billion dollars worth of bitcoin there is always a trace in blockchain for it, no matter how much you mix it no matter how many different wallets you send it, people will know where that money is. That is probably the biggest difference because rich people can't do whatever the hell they want and keep it under the rug, when a rich person fires people or drops the salary or even keeps the salary same with excuses like they are not making enough profit but their bitcoin wallet has hundreds of millions of dollars everyone would know they are lying. So transparency when it comes to money is a huge huge benefit to poorer people and a big damage to richer people.

There are hardly any assets/stocks/currency that can be considered as safe haven, they can all pop at anytime. Nothing goes up forever, it will reach a level where it will fall back to a low level and that’s it. So, it’s up to investors to know when is the right time buy and hold an asset, and the right time they should start selling it. I have even seen people that claims Bitcoin is a safe haven, I don’t really know what to say to such people, but everyone and their choice.

Bitcoin is highly and compared to gold I would say that gold is more of a safe haven since it is stable. Bitcoin is more risky and it should be based on whether you’re able to take the risk.

Bitcoin should be used as medium of transaction and it can be easily compared to gold which can be used as storage of value alone.What you mean by we have to use for knowledge and information,only for study and learning purpose?

If that's the case I don't think it should be like that.

In my opinion, knowledge is more essential than wealth, you may be rich , but what if a bad accident occurs and then you become   penniless ? , at that money what are you going to do without knowledge? absolutely nothing.
With knowledge you can make any dream true or real, and  you can achieve any goal. It is an absolute power, and it helps in order for taking a shortcut way for the success with a less effort. Your mind is definitely free, use it in a good way and not like the others who are trying so hard to scam people.

Yes, that’s the harsh reality. However, all we are saying is just an assumption; we don’t know how the world and the world market will actually behave during periods of such depressions,
because every time something new happens. I do not think that gold is the most ideal saving asset for investment, but this is definitely not the worst option.

Very Interesting one.
I think I agree! Better to start stockpiling lots of useful information than stockpiling the other. Gold will probably be used mostly as store value while Bitcoin Blockchain or decentralization would be useful for information, knowledge,  and used as currency/store of value in very difficult time.

Recently gold prices have been increasing and i do not see why you call Gold a Bubble. Bitcoin is also not a bubble. Bubble is anything which just increases in value and then just burst and it won't last much. Both bitcoin and gold does not fall in bubble category. I think Fiat time will end soon and people will invest more in bitcoins and gold as an asset.

and for now,after corona infected many people in the world,Market participants who have reverted some of their investments to safe assets,according to news i've read,the gold prices which recorded a strengthening last week due to soaring victims of the corona virus made gold prices rise today.so, i guess gold is not a bubble.

instead of losing 30% of price Gold gained 5% of price from November.   Even when some asset lose 30% that can not be called a bubble. That is a healthy correction. Bubble means that some asset price goes so high and then crashes and never ever recover.  Bitcoin was never in bubble. Gold neither.  One coin and Bitcoinect were in a bubble. Their price crashed and will never get back.

As of these days due to continues issues or crisis in different countries. Some commodities were getting difficulty that makes their value lower. It is safer in terms that we can hold it till it regain it's value or after this crisis over everything will make grow again. Stocks were making it hard to to grow but take this crisis into opportunities to buy at discounted prices.

Up to this point, OP's user name makes me go back to the history about mercantilism, this is when people tend to consider buying gold and silver to consider economic improvement and stability. Though, I really wonder why OP said about gold in a state of bubble. Because in bitcoin, yes, probably bitcoin is somehow having a bubble like characteristics, but with gold, I don't think so.

Going back, having bitcoin backed by Gold could possible make bitcoin a safe haven as well, as could see, gold is having a steady market price increase compared to bitcoin that fluctuates every time, maybe its status could be influence if we invest using gold and reconsider the idea of mercantilism.

No one can say exactly which is more reliable The same is true for gold in crypto work  It is very difficult to determine when one will go down and up Neither of the two can be called reliable when it comes to disaster it's better to save your capital.

unfortunate what you say is very true because everything has risks but when you really want to save an asset it is better to have a physical form like gold which in my opinion is still very safe for long-term investment and gold is the safest asset because it is not need electricity or anything to make a transaction.

Gold and bitcoin are heaven yes as per IMF recession is close and china epidemic is bought pulled recession closer stock markets are bad now
if you think gold and bitcoin is not heaven then what will you do it with your money where will you invest options are less or none , what I say I don't play with money in this type situations' you can lose what ever you gained from years ,

keep close on IMF reports and economy data and play smart

With all due respect, I don't think the value of gold is based on a bubble. Gold is still a safe haven for me. If you invest in gold, its value may fluctuate but it will never fall down to zero. That would be impossible. In fact, in the long term, the value of gold will rise for sure. I cannot see any reason why its demand would totally crash. Perhaps if a huge number of alchemists would suddenly mysteriously pop out anywhere in the world and turning stones into gold, the value of gold would turn into nothing. But if the natural supply of gold will remain as scarce as it is in reality and hard to mine, it will remain as precious.

I do think when we put our investments in something we need to understand that it is going to go down and it is going to go up too , that's how we earn , that's like the basis .
Now when we talk about gold I firmly believe that it is way way safer.
Sometimes even safer than the currencies of various countries, considering how gold is in limited quantity and at the same time there will never be enough women put there who want to actually buy jewelery and stuff it will always be in demand trust me.
My whole family is in the Gold business and they have continue to thrive since decades.

True. Gold is underappreciated as of the moment and it's worrying too. For cryptocurrency  investors who have placed a considerable amount of investments here it won't affect them much because they can just pull out money from their account whenever they feel the need to. However for people who have only invested as a means of added profit and those people who haven't really invested at all, it's going to be hard for them. Gold is under the same governing system as dollars, and that pretty much means that if Gold drops, there is a high tendency that dollars will drop too. It could've been good if not only for the fact that most of who will be affected will be the common people. While the rich will still wallow in their money.

I hope gold balances itself out anytime soon. Just because we invest on something doesn't mean we should hate other assets though. After all cryptocurrencies and gold exist in a different investment environment so I don't see the point of hating gold or its followers. Gold's shiny and beautiful after all.

There is no such safe place where you could keep your assets without fear that they might depreciate.
Gold at least has a physical nature and is a rare precious metal, which in turn makes it very valuable to people.
Also, any physically useful assets that have, as I said, physical referents in the real world, will be just those saving things for your current assets in times of crisis or global catastrophe.

Gold bubble? What do you mean? Precious metals are safest haven. It is absolutely more reliable than fiat money.

Gold is actually a very old bitcoin and people are having hard time understanding the connection between them. Right now, you do not go to a store and spend gold, but back in the day that is exactly what people did, back in the day there were gold coins where you melt gold and turn it into coin so you can spend it in places, sometimes it was a small gold coin, sometimes it was a gold bar but eventually you did spent it, it was money as we know it.

Obviously, there was cash created afterwards at some point and that turned out to make it easier to spend money and banks managed to turn "this is proof of how much gold you have" into something totally different but like bitcoin gold used to be just a way to keep your wealth regardless of how your country is doing plus being able to spend it, now bitcoin just turned into a version of gold that could be spent very easily as well.

But ain't both of them common to every investment?
If inflation is prevailing in the country, it is going to impact returns on all kind of investments. Suppose gold has given me 11%, to reach real percentage of return, I have to deduct inflation rate from 11%. Bank rate is no different. But the good thing about Bank rate is we can ascertain fixed return before hand. So only factor we have to speculate is inflation rate or Present Value of future return.
I have my total net worth divided into 3 parts - one in cryptos, one in market securities like share and mutual funds and third in banking channels. If I consider the return in last 3 years, banking channels have given me the best return. Before choosing the type of bank deposit, first step is to ascertain your need from deposit. For example, if your only motive is to counter inflation - you can keep money into saving deposits. In India, I can easily counter inflation plus make good over-the-inflation returns with fixed deposits.

Nothing has 0 risk. We consider bank rate to be risk free which is also not 100% risk free as hyperinflation and bad economic condition can ruin your investment. When it comes to investment, knowledge and how well your investment is hedged is important. You need to be well versed with the economic condition of the country as well as the world. Gold and Bitcoin can be a safe heaven in case domestic currency performs bad. But they themselves are dependent upon many factors which need to be kept in mind in case of diversification.

Gold Will fall 30% this year! 
If the Bulls Step in Price might recover..likely.

Gold is a bubble? More like related to fiats  I think.
Well no. Gold has been and will always been a safe haven. It is been used to store value specially big businesses men. Gold has been quite used by big business, companies or investors  so, therefore we could not just right away say that gold is not a safe haven.
Of course, always been but with an appropriate or more like a sufficient knowledge will just be a waste if there are no platforms such as gold worthy of being safe haven will be use right? So it is not about the knowledge itself but the stuff that will be use.

I'm not a gold bug which means that I disagree with people who blindly follow gold all the time, without considering any market cycles and entering the market at the least opportune time and thinking they can just 'hold it out'.

But right now, gold is undervalued in my opinion especially with all the trade tension internationally. I think that it's only a matter of time before precious metals gets its bull phase of the market cycle.

Silver did drop below $17 which surprised me a little bit. Again, I don't think that it'll regress fully back to $14-15 at the start of the year. Right now would be a good spot for long term accumulation.

Well, gold is considered as something to fall upon whenever a global crisis attacks the economic market. There's different uses for Gold, BTC and Fiat so considering them together might be a bit difficult.
Gold, with its steady value, is a good factor, especially for banks, whenever a global economic crisis occurs, just like what I said earlier. But it isn't really suited for everyday uses, and that's where Fiat comes to.
BTC, on the other hand, is a type of virtual currency, which banks have no hold into so users can have more anonymity when transacting with others. It is relatively new and most of the population hasn't accepted it and maybe don't even know about it, and this makes BTC fall back a bit compared to Fiat. We may see progress in the future, but as of today, those are the roles of each in the market.

Oh and also note, there was never a Gold bubble (as far as I know) since its value has been steady since like forever.

Gold is mostly a safe haven whenever there is a serious or a global economic crisis that's when investors tend to invest into gold and makes the value skyrocket over a short period of time. But somehow during the 2008 great recession the value of gold seemed to drop instead of going up which seemed to be the norm during every financial crisis.

Sure, there is no safe heaven. Well, except the real heaven itself, which unfortunately is not on earth. Lol. However, we can better place our selves in someplace close to safe heaven.
The best place close to safe heaven is not just the knowledge and information we get but its utilisation.
That is why the saying goes: Knowledge is power.
Having said all that, I think ‘safe heaven’ can be relative. Some see gold as a safer heaven while some go for Bitcoin.

Can you tell more please. So Gold bubble will pop after I guess decades. When it will pop and at what price you expect is will settle then?

If people think Gold is a bubble that's bursting, they are highly mistaken. It takes a few seconds to pull out a Gold chart to point out that its price has been trending up slowly, exactly like how it should perform. It's not a get rich quick scheme like most shitcoins are. It's a serious asset for serious people.

Gold's bubble bursted back in 2011 after a bull run that left people in the financial world bewildered. It saw a correction of ~45% afterwards but that's perfectly normal considering the profit taking that has to happen. Speculation isn't any different within Bitcoin or within Gold. People are keen to buy things that go up and sell them the moment they go down.

No asset is a safe haven when people have bills to pay and investors have debt to pay off. 

Stop comparing bitcoin with digital gold. Honestly, there is not much difference in the price being set for either gold or bitcoin. Both of the prices are derived based on the availability. Both of the prices depends completely on demand and supply. Where did you come with the information about bitcoin being banned in "most" of the nation.
As far as I know, only few government around the world banned the use of bitcoin.

This should not be compared with others. Everyone knows about it!

Will fall even more??
Who said that??
You??

Please, give a valid data or theory about this! I doubt you just guess it.  

I suggest you spend a few minutes to know the current condition about Gold and the price prediction in the future. It will help you to understand that Gold is really a bubble or not. For me, based on some articles, Gold is quite safe and shows a promising chart for its price.

Please read these articles about Gold price prediction :
1. https://www.ccn.com/gold-price-rally-2020-global-stocks-slump/
2. https://capital.com/gold-price-forecast-2020-and-beyond-to-buy-or-not-to-buy

I hate this term bubble to be honest, it's so often misused by everyone and it just ends up with everything being called a bubble.

Look at gold, it's the farthest thing from a bubble and it's literally one if the most stable investments, and it's still being called a bubble. What?

It's still based on speculation as well, and does pretty well, and we often refer to bitcoin as digital gold due to them both having limited supplies.

gold's supply is limited. it just doesn't have a hard cap on supply. bitcoin was really the first asset in history with that attribute.

but right now bitcoin is actually quite inflationary. its stock-to-flow ratio will still be lower than gold after the next halving, which suggests to me that its price is more so driven by speculation than limited money supply.

There is no holy grail when it comes to investments, most of our investments analysis are based on speculations and untrustworthy technical analysis.

Bitcoin is a digital gold, the situation driving its price is different from that of natural gold. Remember that gold is wanted by all nations while most nations ban bitcoin.

Investment assets is not a respecter of anybody, we should boast less when our predictions happened since we did not have much contributions towards it besides mere words.

I haven't seen gold as a safe haven, ever. It's an asset that's based on speculation mostly with how +80% of its daily volumes are derivatives people trade. If people really cared about gold they would buy and hold it physically.

Yes, it has been around for thousands of years where people used it as money, but that still doesn't mean it has to go up in value continuously, especially with how the supply isn't limited at all.

People tend to refer to gold as deflationary currency, but that's not the case.... another thing is that gold doesn't lose its utility, which means that the gold coins or items of thousands of years ago can be put back in circulation today by melting them.

Before 1970, gold prices tended to be stable, not much fluctuating. However, after 1970, the price of gold fluctuated sharply until now. The gold bubble had indeed occurred in 1970 but after that, there was sometimes a decline in prices, it was not significant and usually only in the short term, and did not change the tendency of its value to continue to rise.

Why does the demand for gold tend to rise because gold has a real value that cannot be lowered by monetary policy paper money can. Simply put, the more paper is liquidated, the more your purchasing power is eroded, and the more you need to shift your belief from paper money to gold.

People who worry that gold is in a 'bubble' usually compare whether gold is valued in paper money. Their perception is that paper money is a reasonable benchmark for financing goods or assets that will be valued. in contrast, the central banks that control the banking world use the gold system as a benchmark for their value and support for their currencies

If the American dollar does not fall due to the recession in the US, then it will not affect the price of gold. However, if the dollar goes down due to a recession, the demand for gold will also be affected so prices will also change. "As soon as demand falls, the price of gold will go down too. Because international gold prices are determined in US dollars, then the price of local gold is also influenced by the exchange rate against the dollar. Assuming a fixed price, the weakening of the rupiah will make the local gold price higher. vice versa, which means that the prediction of gold prices is determined by two factors: first, the development of international gold prices and second, the exchange rate against the dollar

In my opinion, gold is still the best place to invest because the risk of gold is considered low.

Safe haven is a concept that is a loose term for something that can be providing some stability during the times of crisis, upheavals and chaos especially in the global scene. There is no such thing as an absolute safe haven because there will always be risks wherever we go and whatever our choice can be. This can be referring to gold or to Bitcoin. However, we know that in terms of stability, Bitcoin is definitely more volatile than gold. Fiat or paper money is for sure not the safe haven because they can be demonetized anytime so its value is very much dependent on the government who issued the same papers. Now, talking about knowledge and information, we also have to remember that what you know can be changing and they can also be obsolete. In other words, there is actually no safe haven and if you appreciate spiritual matters in my view only a higher being can be providing that safe haven.

What bubble? Gold has been ranging sideways for 8 years.


Of course BTC is no safe haven. It was invented 10 years ago and still has major bugs from time to time.

There is no true safe haven. Nothing will hedge you for all contingencies. In a conventional crash/recession, cash is king and gold often declines. In a fiat currency crisis where USD and others are collapsing, the opposite will likely be true and gold will outperform everything, being that it was the most reliable monetary basis before fiat money.

I don't think any gold investors will move to bitcoin because both are completely different extreme on volatility and ROI so increase in the price of bitcoin may not affect gold price as you mentioned.Gold price will decrease in case of deflation but it doesn't mean the value is dropping.If there is an economic crisis then it will test bitcoin not the gold so gold investors are in safe now not in heaven.

50% investors Will be turning into bitcoin very soon.

Its not a end for Gold coz its too big to fall like that.
But I guess,  Gold Will make 30% drop and After that Other 10% price drop.

Gold is Still on the go... But  the 30% correction is coming Up.


Its a Good for bitcoin coz many Old Gold investors Will Invest into bitcoin.


Dont forget that fiat money is cheap again.
When money is cheap and unflation high then Gold and bitcoin can go Up.

But First Let's see how many Gold investors can remain calm during the time When Gold start Falling.

Did you said Gold bubble? Or am I the only person seeing that words.

Gold is not the bubble,it is most preferred asset for anyone who don't want to lose their value of asset so its not the safe heaven its storage of value in secured way than any other thing.

Knowledge and information could be a bubble too,if you are a well educated person before 20 years,what if you stuck with the same level of skills in 2019.

Gold Price Falling and it Will fall even more!

Gold is NOT in a bubble right now.  In fact, gold is existing in the market in the farthest thing from a bubble you could imagine.  It was in a bubble in the years leading up to 2011, but definitely not now.  So I'm not sure what you're thinking here.


Gold is the closest thing to a haven as you're likely to find in the investment world, and that's basically because its price isn't very volatile (usually).  And it's supposed to keep pace with inflation, even though I would contest that assertion.  Bitcoin is most definitely not a safe haven asset, and that's precisely because of its volatility.  Sound about right?

Absolutely there is no better safe haven than one's knowledge as it will lead us to success in every aspect but I don't agree with the statement saying gold is not a safe haven as it has always been safe haven since ages and it will remain to be safe haven,  kindly explain us few points why gold is not a safe haven? Yes bitcoin is not a safe haven as its volatile.

As I predicted here the Gold bubble Will pop.

People asking me is the Gold really safe heaven? 
My answer is, Gold is not safe heaven even bitcoin is not safe heaven!! 

Your best safe heaven is knowledge and information.