Wednesday, January 12, 2011

Must We Choose? Deja Vu!

January 6, 2011
Gold's Relative Bubble? (Musical Tribute)

There has been huge talk about gold being in a bubble situation with a burst imminent, but perhaps palladium, silver and copper are better candidates for such an assessment.

Must we choose?

January 12, 2011
Is Gold a Bubble About to Pop? These Charts Say No

If we're looking for speculative bubbles, would a stock that has quadrupled in a mere two years qualify? Take a look at the chart of global industrial stalwart Caterpillar (CAT).

If we compare GLD with CAT, gold looks like a model of stability. If there are any incipient bubbles in the market, Caterpillar and silver are much better candidates to experience a sudden pop than gold.


Must we choose?



Unwise was the wayfarer who journeyed by night, for in the shadows greedy eyes glittered...

3 comments:

Stagflationary Mark said...

As a side note, I owned CAT from 2000 to 2004. It treated me very well.

I have absolutely no desire to own it now.

G.H. said...

"I have absolutely no desire to own it now."

And you're not alone...

Insider Selling Tops Buying by More Than 100 Times

"A total of just $2.54 million in buying took place in the first week of 2011, compared with more than $289 million in selling."


Word ver: cation - The only thing missing is 'you'!

Stagflationary Mark said...

G.H.,

CAT Insider Selling Tops Buying by More Than A Trillion Times Over Last 6 Months?

Yahoo: CAT Insider Transactions

Purchases N/A
Sales 150,222


Although I am a hoarder of basic necessities, I'll pass on hoarding CAT shares with the intent to let them roam freely within the confines of my home. I might be crazy but I'm not THAT crazy. ;)