Your Thoughts: The Gold Bubble?

Posted: 23 Dec 2010 04:08 AM PST

For this article I wanted to try something different: I will propose the idea "Is gold in a bubble?" and if so, "What does this mean for gold?" Based on my review of "How to Profit in Gold" posted not too long ago, it seems that most people will need to understand gold a little bit better in general – not to mention what it means for the metal to be in a bubble.

Photo: The Big Quack

I will be the first to admit that I do understand the subject, but that I do not understand it well enough to offer an educated, well-backed-up opinion on the matter. Let's make this an "open article" and discuss the gold issue in the comments so as to come to a more balanced conclusion as the result of cooperation.

First of all, if you're reading this [or any article, about any subject] about gold with particular emphasis on "The Gold Bubble", know that there will always be multiple opinions that may be based on facts or…well…opinions! It is for this reason specifically that I have attempted the risk [with the hope of a sound, worthwhile return!] of writing an article about "The Gold Bubble" without actually going into detail about the issue itself in my writing of it; I am simply trying to outline in a slightly sarcastic fashion the simple truth that no matter what issue you investigate there will always be two or more sides.

"…well that makes no sense at all", you may say or "This is a blog about personal finance not…whatever…you're… …talking about." Well, I've got news for you: personal finance has everything to do with opinion because it is not and never will be set in stone. This is here mentioned to demonstrate finance – and person finance in particular – as being diametrically opposed to the natural sciences which may be codified and tested over time and thus recognized as immutable [through constancy with empirical testing].

Personal finance on the other hand, not to mention gold, is not so "predictable", and thus should not be given the same form of analysis; whereby the layman may refer to someone with "Ph. D" "M.D." , etc beside their name for advice on, say, cancer, or what material was used to manufacture the space suits that sent Neil Armstrong et al to the moon, it may not be so easy when it comes to finance and investing.

Wherein science may be concerned with the open development of the species and the progression towards greater humanity, harmony, and discovery, finance does not seem to have the same interests in mind. I do not mean to say that finance and its respective teachers are not trustworthy people – not at all, but what I am aiming to instill is that I could have just as easily written whatever I wanted to in this article and convinced at least a few people to believe it, simply by being 'convincing.'

What this article is meant to do is stimulate thought and focus towards the topic of gold and the issue of its current status with regard to a "bubble." The world seems to get rather boring with the "same ol' articles" circulating 'round; let's change it up and do something different. What do you think…?

With freedom comes responsibility, and with financial freedom there is no escape from this timeless truth; In a world where our unverified opinions can easily be someone else's, it's time to remind ourselves to take the time to fact-check, verify sources, ideas, etc. It is time to assimilate as our own opinions those pieces of information that we genuinely agree with for a specific reason, and not merely because a lot of specific people are agreed upon it.

Dollar Matters: Family Time!

Posted: 22 Dec 2010 09:00 AM PST

Everyone knows that the holidays are supposed to be a time that we spend with family (and maybe friends). As you’re getting together with family, keep the following posts in mind. And have a very Merry Christmas!

Giving Christmas Gratitude to Our Troops

Even if you don’t have family members that are troops, it is still a great idea to share gratitude for those who sacrifice so much. This post from Redeeming Riches is likely to especially find relevance with Americans at this time.

Safety Tips for Holiday Driving

As you go to visit family members who might be far away, stay safe. Wise Bread has some great ideas for keeping safe. These tips can also help you prevent an expensive mishap.

Homemade Christmas Gifts

Thoughtful, homemade Christmas gifts can be a great way to enjoy a frugal Christmas while showing your family that you care. The Canadian Finance Blog has some great ideas.

If I Got to Pick the Gifts in The 12 Days of Christmas…

Len Penzo thinks that saddling your family with crappy, outdated gifts is in poor taste. Instead, you can wow your family with the updated 12 Days of Christmas gifts he suggests. I’d rather have an afternoon at the spa than a partridge in a pear tree.

Lending Money to Family Members: Worth the Risk?

You might feel like helping out this time of year, but maybe lending money to family members isn’t the way to do it. PT Money considers your options.

Life Insurance Blog