Where will you be when the Gold bubble bursts?

Smart Holiday Advice from our Resident Expert

This expert article was contributed by:
By Brandale Randolph, Stock Broker
brandale2221@gmail.com

While, no one can predict the highest or lowest points on any roller coaster, while we are on it, pretty much everyone should realize when the ride is about to come to an end. But please, don't wait until it comes to a screeching halt before you get out. Jump while there is still a beaming smile on your face because the next big gold loop may dislodge all of the valuable contents from your pockets.

People who are not already in gold please look for the next big thing. Bananas, the Brazilian Real, coffee, sugar, algae, bees wax...whatever, just stay away from Gold. For the fortunate few who are already in gold stocks, ETFs, funds, etc, it's time to take your chips off the table for the following 3 reasons...

1) History repeats itself...

Just last year the was this amazing commodity that everyone wanted to buy. Investors scrambled to buy any and every kind of stock, option, business or toy related to it. Business channels dedicated hour long programs discussing the global impact once this particular commodity reached it's peak. Governments all over the world leveraged larged portions of their total GDP to buy large stakes in it. Then the hype really hit home when scammers and bucketshop commodity brokers started calling people like bill collectors every night begging them to invest in this next big thing that would make them millionaires.

Yes, I'm talking about oil. That didn't turn out so well did it? Don't think Russia, Dubai and Middle America made the billions. Now we have Gold. History is repeating itself.

Sound familiar? The bubble is beginning to burst and people still think that its not too late to jump in on the bandwagon. Sorry it is!

The bubble is beginning to burst and people still think that its not too late to jump in on the bandwagon. Sorry it is.

2) Gold Prices will go down when the dollar rebounds..

The value of gold and the value of the dollar are inversely related. When one goes up, one will go down and vice versa. Therefore as the Federal Reserve raises interest rates in order to curb inflation the dollar will go back up. In order words, if this continues the dollar to besotted cheaply borrowed will be worthless. The reason for the dollar drop was to stimulate the economy. In much that same way that too much water will kill your grass, too many cheap dollars floating around the globe will kill our economy.

3) Wall Street doesn't play fair...

"The purpose of Wall Street is to make fools of as many men as possible."
- Bernard Baruch

Conventional thinking leads most people to believe that sellers can't keep up with demand for gold. For coins maybe, but an overwhelming majority of global investments in Gold are in Gold options, futures, hedgefunds, ETFs, and stocks. these things TRADE actively on an open market called Wall Street. Truth is Wall Street affects the price more than John Q public and its desire for the rare coins it sees advertised on TV.

The markets are designed to take from the poor, misinformed 90% and give to the Wealthy 10%. The price dropped from a record high of $1226 to where it is today. Wall street as taken it's chips off the table. It's time for you to take yours.

People don't let what happened during the bursting of the tech bubble, the real estate bubble, the stock market bubble and the oil bubble happen to you and your family again. Take your gold chips off the table and run!

When the gold bubble bursts, remember you heard it here first... Tell your friends....