People buy gold under the delusion that it is an alternative, safer currency. Then they realize it isnt, the people who didn’t get out in time get burned, and gold falls back down to a price where people can actually afford to have jewelry made out of it. Wait a generation (so people forget), and for something to make people get nervous about their means of exchange, and there you go again. It’s tulip mania, but shiny. Profit is made by getting in during the runup to a bubble, and then getting out and staying out before it ends. The second part is very stressful, because you feel like you are missing out if you bail at any time before the absolute peak, which makes it tempting to go back in.. Which is a surefire way to wind up holding the bag when the inevitable collapse comes. Poker. Better for your blood pressure.
People buy gold under the delusion that it is an alternative, safer currency. Then they realize it isnt, the people who didn’t get out in time get burned, and gold falls back down to a price where people can actually afford to have jewelry made out of it. Wait a generation (so people forget), and for something to make people get nervous about their means of exchange, and there you go again. It’s tulip mania, but shiny. Profit is made by getting in during the runup to a bubble, and then getting out and staying out before it ends. The second part is very stressful, because you feel like you are missing out if you bail at any time before the absolute peak, which makes it tempting to go back in.. Which is a surefire way to wind up holding the bag when the inevitable collapse comes. Poker. Better for your blood pressure.