Gold the next bubble?

I keep hearing everyone ranting and raving about the value of gold lately. Has anyone ever heard of the super model test? It’s pretty simple. When someone who has no idea what the value of gold should be starts talking about it then there is a serious chance that was they are saying is about to take a turn in the opposite direction. It is a simple test of too many people rocking the boat in one direction or the great pendulum of life. It has to inevitably tip or go back in the other direction. It is my hypothesis that gold will become the next bubble. It is “safe” and everyone does it in time of economic crisis right?

Now that being said don’t get me wrong the government has to print dollars for this massive TARP bailout which was started by the Bush administration in 2008. But here is the thing, in times of economic distress who honestly wants a gold bullion to sit on? I’m mean think about this for a second if you were in a third world country and could barely eat would you want a gold chair? Probably not because there would be no market to deliver it for its true value. Its intrinsic value is that of…a chair. Again, I’m not bullish on gold and I’m not at this point putting my money in either direction. But the current gold situation reminds me of “Flip that House” on TLC a few years ago right before the housing market collapsed. Every channel I turn on every time I drive down the street I see people who want my left over gold jewelery. If McDonalds starts putting a guy dressed in a gold chicken nugget on the corner with a sign that reads “cash in your gold here” then the run is over. The only question at this point is when. Again, buy a commodity that you know has true instrinsic value, gold is too emotionally driven at this point.

As I write this article the value of gold is $1064.

Also, before you go and give away your gold at one of those “Cash 4 Gold” places you should value it first. Here is a simple tool that may help…