posted on Jan, 17 2011 @ 03:10 PM
this precious metals talk as of late is eerily similar to real estate in 2007, investors said "homes are a great investment because everybody needs a
place to live, it can only go up from here."
or the oil bubble in 2008, investors said, "we are approaching peak oil, it only can go up from here"
or the stock bubble in 2000, investors said, "the internet is here to stay, it can only go up from here."
or the uranium bubble around 2007, investors said, "population is rising and nuclear power is here to stay, it can only go up from here."
or the commodities bubble a few years ago, rice, paper, wheat corn, etc all blew up, investors said, everybody needs to eat, it can only go up from
or the stock crash in 1929, investors said, "stocks have reached what looks like a permanently high plateau"
or even gold and silver in the 80's
the point is, there is merit in owning some metals as a hedge but there is a point when a small price increase catches the eye of technical traders
who buy on the momentum, then that momentum is picked up on as more and more people notice. then all kinds of reasons why it will keep going up
forever make the rounds until its a giant bubble.
with the frequency of this repeated process i still wonder how people fall for this over and over again.
be careful friends.