Are you sick of all those dumb cash for gold commercials? Yeah me too. Gold is around $1200 per oz, this is very over priced. Yes gold is a hedge against inflation and the falling dollar, but when you can’t listen to the radio or watch the TV for more than 10 minuets without seeing a buy gold or cash for gold commercial, it is time to short gold or at least get out of the gold market. I call it the beanie baby effect. When your crazy aunt back in in the 90s was paying $400-$600 for a stupid stuffed animal you know things are wrong. The same thing happened during the internet and housing bubble. When everyone is talking out it, it is high time to get out. When you can’t explain why something is so expensive it means that is over priced.
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Short Gold means TRADE IN YOUR GOLD FOR CASH… i.e. exactly what the commercials want you to do, because there are more buyers than sellers. Check out the Dow/Gold ratio history. The way the federal reserve is printing money and the debt our nation is accumulating can only lead to inflation, which will mean it will cost more dollars to buy an ounce of gold… it’s a store of value basically. China and India are buying up gold, Russia too. It will likely go beyond $3k an ounce within 10 years. It was $250 around 10 years ago, so is up 500% in only 10 years. Another 300% change isn’t unreasonable. Silver has even more upside, since it’s consumed in industrial use and has unique properties (antibacterial).
Ultimately though, both are just shiny metals and guns, land, food, shelter, energy, water sources are infinitely more valuable in a serious catastrophic event.