Matt, do you think gold has entered bubble territory? I haven’t studied it but there are three warning signs that I have seen, none of them are mathematical.
1. It has replaced Real Estate/Mortgage in advertising for both selling and places that will buy your gold.
2. It has replaced R/E as a watercooler discussion topic.
3. The same people that I know who were flippers and annual refi toxic loan people are now having these “tupperware” type home parties where you bring your unwanted gold jewelry and sell it, the housewife hostess gets a kickback for hosting the parties.
The third one is the most important to me, I have a number of friends who I have known for a decades, they are my canary in a coalmine, they fall for every bubble and dive in deeply. Whatever they get into is cause for suspicion as they seem to be bubble magnets. Now that they have turned to gold, my spidey sense is acute. Once every other housewife became a realtor, the end was nigh, now that every other housewife has become a gold broker, I’m thinking the game is over.
