Well, here we go again. The mania is beginning and the cliff awaits …
Gold traded near a record in New York as investors sought an alternative to equities and a protection of wealth …
When former President George Bush ran for reelection in 2004, he touted the record level of home ownership as an accomplishment of his administration.
Gold futures are 0.3 percent from a record and had the highest ever close yesterday …
In the early, mid, and later part of this decade, the national median price of a home rose fast and kept rising to record levels, inspiring those with notions of getting rich to buy and flip.
Once the record is taken out, we should inch higher toward $1,300 an ounce.
Between 2004 and 2007, pitches appeared everywhere – “Real estate can make you rich like so and so … Buy with no money down and sell for a huge profit … This month alone, my wife and I made $150,000 in real estate.”
UBS AG today raised its one- and three-month gold forecasts to $1,300, from $1,230 and $1,200 respectively…
In 2006 and beyond, ratings agencies were giving top ratings to AIG, Lehman Brothers, and other financial giants and the exotic instruments they were pushing.
CNBC’s “Mad Money” host Jim Cramer yesterday recommended the purchase of silver on a “bullish” outlook for metal prices …
In 2006, I almost bought AIG because Jim Cramer said it was undervalued at 50 some dollars per share.
In late 2004, I looked around at the mania surrounding real estate. All anyone could talk about was making money in real estate. I told anyone who would listen that the bubble could not last, that the bursting was imminent. By the end of 2005, I had completely divested my investments in real estate.
Gold and silver are the all the rage today, and if you are really good at timing, you can probably trade your way to a bundle of money. Then again, if you are buying, well, because you feel compelled to buy, caveat emptor. The precious metals market may or may not collapse in the coming year or two, but one thing we know for sure – it will eventually. Just ask the Dutch who invested in tulips back in the 17th century … Actually, now that I think about it, just ask those who invested in real estate back in 2007.
Trade in the day; invest in your life …
