Gold and/or silver. Anybody hoarding, buying or partaking in these markets lately?

[CashGap]

Originally Posted by Zed Homme

Valid points, but I still disagree. The price of gold was below 300/Oz less than ten years ago, and while it is no secret that major global currencies are in trouble, I don't think they're in that much trouble. The driving force behind gold's incredible rise the past three years have little to do with the actual use of the metal or it's supply. However, national banks (like china) are stocking up as a hedge against the dollar. Also a very large amount is going to the creation of etfs which will be sold to small investors that are wary of the dollar or stock markets. As the price has been rising the demand for these etfs has grown hence my belief that a bubble is forming. Of course this is just my opinion and if I knew things with more certainty, I'd be arranging now to short the metal. Problem with bubbles is we can never really confirm they exist till after they've burst. Nor can I tell you how much farther the metal is gonna rise till the bottom falls out. I couldn't confidently recommend a hold or a sell, but I think the moment for entering this market has passed.

Good points, but they draw me to the opposite conclusion.

Wise banks are dumping dollars for gold. They will not reverse. Physical holders of gold are selling ETFs to those (see above) who won't hold gold for some reason.

Now (cough cough mortgage crisis) far be it from me to say that OBVIOUSLY we'll eventually find out that the ETFs have sold the physical gold more than 1.0 times, but it sure seems obvious. At that point, gold will rise from these doldrums to it's true value, as folks scramble to never again hold "a promise of gold" when they could hold the real thing.

My $.02.