By Louis Golino
Many people say gold is a bubble about to burst, but is that really the case? One of the problems with identifying bubbles is that one is not certain one exists until it has already begun to burst. I do not think that is the case with gold today, at least not yet.
1.) The average American is selling gold, not buying, because they need the money and believe the mainstream press, which keeps telling them prices will collapse soon because they are too high. In the late 1970's there were huge lines winding around coin and jewelry shops as everyone rushed to get in on gold. Today if you go to those establishments and wish to sell, you had better plan on being there a while because so many people want to cash in on high prices. Not nearly as many people are buying, at least at the retail level, in the U.S.
People at cocktail parties may be talking about gold's meteoric rise, as Dennis Gartman, a longtime commodity trader and author of the Gartman Letter said recently, but they are mainly doing just that -- talking about it. If you ask people if they actually own gold, relatively few people outside of the very wealthy and people outside of America in fact do.
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"Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing ever happened..." - Winston Churchill