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Breaking the Gold Bubble!

World Governments and organizations will sell gold to revalue currencies and stimulate investment in weakened areas of the world economy.

Despite all the negativity, I'd bet that a lot of the doomsayers still have money in the markets. If they pull all their money out and put it in gold they'd better be able to make that sale quickly when the gold market collapses. What other options do governments around the world have to stimulate markets? They can dump some of their gold. By selling their gold they will set into motion a gold selloff which will cause all that money tied into gold (which does nothing for the economy) to be released. The last gold selloff by the UK and IMF had similar effects on markets if I remember right.

So what I am saying is those people who hold gold in forms such as coins will have to sell to take the profit when the bill sell off comes. The problem is that the gold shops may not be willing to buy or even have the cash to buy. It's not easy to quick sell actual gold bullion when there is a collapse in the gold market. My message is a lot of people are going to see the value that they have in gold drop 30-40 percent before they might even be able to make the sale. The gold shops may even close their doors. How many miles are you going to travel to sell that gold? This event may create some legal issues such as when shops refuse to buy back during the sell off; and the doomsayers who hold gold will be the losers in the end.

So sell your stocks if you wish and buy that gold. You will find yourself taking a double hit on your wealth. You'll never be able to dump that gold as fast as you bought it. If you don't believe this then you should try selling a house in America today. Gold is a bubble and when it breaks you are going to suffer.