Hebrews 4:12

For the word of God is quick, and powerful, and sharper than any twoedged sword, piercing even to the dividing asunder of soul and spirit, and of the joints and marrow, and is a discerner of the thoughts and intents of the heart.

Thursday, May 7, 2009

Just My Thoughts

I keep seeing commercials touting the great investment potential of Gold. They keep talking about how much more it's worth today than it was in 2000. I have to wonder though, is this real? Is the increase in Gold prices being driven, at least in part, by these very commercials convincing more people to buy more Gold? It seems to me that they could be increasing the demand just by telling everyone how great Gold is, and increased demand, against a fixed supply, drives up the price. I would say that this means that current Gold prices are artificially inflated, causing, what I'm going to call, the Gold bubble (getting this idea from the housing bubble). This is making me thing that, like most bubbles, it will burst at some point leaving a lot of people with piles of Gold that are worth far less than what they paid for it. These are just my thoughts, but it seems to me that if the price is artificially high, it's got to come crashing down at some point, right? I would think so.

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