Many people think that this is a great time to buy gold. However, the same people who are saying that now were saying it when gold was at $1,800 per oz.
The price of gold has fluctuated over the last 5 years.
Personally, I think it is better to hold gold than dollars. The dollar is collapsing, and I think it will continue to collapse over the next decades. However, that does not mean that everyone should go out and buy gold.
Bitcoin has gone through its second bubble, and it is interesting to see how it survives. Although many people thought that the price would crash to a small fraction of its high of $262, it seems to have stabilized in the $100 to $120 range.
Image courtesy BitcoinCharts.com
The popularity of Bitcoin has exploded over the last 6 months, and it was clear that the bubble would burst. However, it seems that Bitcoin has gained enough traction to make it survive through the price crash. The chart looks quite strong at the moment, but only time will tell if Bitcoin continues to rise in value.
It has been quite interesting to watch Bitcoin as it has gone through one bubble, and consistently risen since. Many people thought that Bitcoin was finished after its stratospheric rise in 2011, and it’s subsequent collapse to $3. Can Bitcoin survive such a massive devaluation?
Image courtesy Bitcoin Charts
Recently Bitcoin has achieved quite a bit of attention, because of WordPress.com announcing that they will accept payment in Bitcoin. More recently, Reddit has decided to accept Bitcoin. The more interesting (and perhaps) exciting development is that you can now buy pizza with bitcoins.
Bitcoin is the first and most popular crypto-currency. It has some very interesting characteristics that make it similar to a commodity and a fiat currency. It even has had a history of a typical bubble.
Image courtesy Bitcoin Charts
As you can see from the chart above, Bitcoin has undergone a typical bubble. Does that mean that Bitcoin is dead? I don’t think so. It has stabilized since November 2011. In addition, there are thousands of companies that accept Bitcoin as payment has been growing steadily. (Apparently the site is having an issue with its SSL certificate, so you may get a warning).
BitCoin is either an economic revolution or another foray into the internet-based currency trap.
Technically, it’s a person-to-person virtual currency network. When you use bitcoin, you’re actually receiving protected digital keys that you can use to exchange for goods and services from other folks who accept or use Bitcoin.
If you buy an item, that coin transfers to the next person, just like passing on a dollar at the grocery story.
However, Bitcoin takes a different tack from early attempts at virtual coins. Continue reading →
The gold and silver rocket has appeared to have either leveled off, or is preparing to crash–depending on who you talk to. Just a few months ago, gold and (especially) silver were on a near historic bull market trajectory.
Silver, for instance, was up over 150 percent from its price a year or so ago. Gold has been on a rampage, too.
This sudden skyrocket into the investment stratosphere is one sign of a bubble. You can read my article on other signs to detect silver bubble-mania here. Suffice it to say: things that go up quick, tend to go down quick.
Not everyone is convinced that the silver and gold train has permanently jumped off the track.
Everyone knows that politicians tend to be less than honest. I think another common characteristic is that they try to extend their influence beyond their range. This may not be a bad thing. As they rise to power, so does their level of influence.
One thing that the politicians attempt to control with limited success (at best) is the economy. Yes, it’s true that by choosing good economic policy the government can enable businesses to thrive and succeed. However, there is a limit to how much they can do. Beyond a certain point, the politicians do more damage than good.
As gold continues to soar, more and more people want to get into the market. However, they feel that gold has gone up so much that it is overpriced. How do we know if gold is too expensive and going to get cheaper, or if it is going to continue to go up?
Will Gold Continue to go Up?
You have probably guessed, but the answer is nobody knows. However, we can still make an educated guess. And, using other principles of successful traders, we can even make money in the process.
As the gold market continues to go up, I thought it would be a good time to reflect on what has happened over the last few years. The current trend started in 2001. Since then, gold has appreciated from $300 an ounce to about $1,375, which is a new high that was hit today.
Many people think that since it has appreciated so much (about 4 1/2 times), that it must be overvalued and about to fall. I think this line of thinking is a bit naive. And, there are many factors that are driving the price of gold still higher.
After doing research today about the gold market, I was surprised to see the big movement in silver. It seem that the entire character of the commodity has changed. It has gone from being in a sideways market to a strong, clear uptrend.
SLV - Silver ETF
I think silver is a good investment because of the large amount of money being printed by many countries, especially the U.S. Besides that, it seems pretty clear that not just the U.S. but many of the world’s economies are on shaky ground. What do you think will happen to the price of silver if there is a major default?