Justin du Coeur (jducoeur) wrote,
Justin du Coeur

Oh, look -- another bubble

[My, I seem talkative today. I can only assume that this is a reaction to feeling like I haven't posted much lately, combined with trying to get my mind off the frustration of bending SQL to my will. Anyway...]

So the slowly-growing news on the money front is that gold is fashionable again. The price is up to fairly silly levels -- around $1000/ounce. Why? Well, everyone is panicking about other places to put their money, and gold always has a certain cachet. And hey -- the price is going up! Why is the price going up? Because everyone is buying gold! Surely that means that it's a great way to make a good return on your money, right? After all, everyone else is doing it!

Basically, this logic is akin to, "Choose Rock. Rock *always* wins." It's another bubble, inflated by the popping of the previous one. For the time being, some people with good timing are going to make a lot of money; in the long run, many people are going to take a bath on it when fundamentals reassert themselves. Caveat emptor...
Tags: economics

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