Sales of Physical Gold

[benjamen]

http://finance.yahoo.com/news/gold-rush-over-175820898.html

"This is the first time in our economic history that we have a situation where there is such tremendous economic uncertainty and global fear when gold has not skyrocketed in tandem"

Coin dealers say their clientele is changing. "Previously, we had the general public purchasing gold," Rosenbloom said. "Now our coins are going to less people, however, more sophisticated, big-money investors and buyers."

If gold is a bubble, why are physcial sales and nominal prices actually dropping?

 

[bushi]

Well, for one thing, how the average family's balance sheet looks like? The overall household debt level is some 130% of overall household incomes, if my memory serves me well. Well, I think if I was in as much debt, I wouldn't be shopping for gold coins, ~16 hundred dollas a pop, either. Even assuming that I went down the rabbit hole, and do not trust official tubes, telling me how barbaric, unproductive and all kinds of bad things the gold is - I simply couldn't afford it.

When I see George Bush Jr.'s son, standing in front of the nation as another elected president, saying how great idea it is for every american family to have a stash of gold under their bed (regardless of price/OZ), and how that next great financial product, coupled with govt initiatives will allow every american family to have one small stack stashed away for a rainy day, well, a year on from that date, I'll know we are in a bubble