etc

Surest sign of a gold bubble?

Since Bank of America and LaSalle Bank merged a few years ago, there has been a nice corner storefront available for rent in the upscale suburban Chicago city where I live.

Now it seems a new tenant has moved in: the fourth national retail location of
Bullion Express.

I didn't have time to wander in. But it appears to be the sort of place where, after a day of shopping or a long commute home, you can stop in and pick up a few gold bars or South African Krugerrands. You know, just because.

I realize there is a reasonable case to be made for gold right now—a case the markets have certainly been making for years.

That case, briefly: Central banks have been flooding the global economy with money. Inflation is tame right now, but that could change. Gold, with its supposedly timeless value, provides a hedge for nervous investors against rising prices.

photo

None of this is unreasonable. Still, take my non-professional financial advice for the little it’s worth. Doesn’t it seem like we’ve seen this movie before? Remember tech stocks being different in 1999? Or the home price models in 2007 which
a sustained drop in housing prices literally didn't compute.

Think about it: Gold prices have to be high and rising long enough for someone to notice the trend, formulate a business plan, find the appropriate real estate and open multiple storefront locations.

By the time all this can take place, might it be time to start looking for the
next financial opportunity?

Jan 2012
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