World Bitten By Gold Bug

The front page of the Wall Street Journal today has the above title on the front page.  It does, in fact, seem as if the world has been bitten by the gold bug.

A person can't turn on the TV or the radio for more than 5 minutes without seeing a commercial to buy gold.  And yesterday gold closed at over $1500 per ounce...when just a handful of years ago it would have been around $200 per ounce.

Why is this happening?

Here is probably the main reason;

 People have a feeling that our paper money is going to go in the toilet so they want to have something that is tangible and as the saying goes, "Gold has never been worth nothing."....so all the folks are worried about their savings and investments becoming worthless so they are desperately trying to find something that they hope will hold it's value.

Once this happens and millions of people start clamoring for the exact same thing, the demand skyrockets and until the supply can catch up...the price also skyrockets.  Basic Economics 101.

And then when everyone else who DIDN'T own any gold sees that gold was up 100% in the last few years while their bank only payed them 1%....they can't hardly stand the fact that they missed the opportunity for such handsome gains...and they cash in much of their savings and buy gold...believing it is going to go up another 100% in the next year.  And now we have a classic bubble building...just like we did in the Dot-Com boom of the late 1990's, and just like we had in the real estate boom that popped in 2008.

If I had an ounce of gold for every time someone asked me about buying gold in the last three years....I believe I would have enough to fashion a golden calf!

So is gold going to continue going up?  Who knows??  If the dollar continues to fall in value and demand all over the world, then I would say that gold WILL continue to go up when compared to the value of the dollar.  But for how long?  Who knows?  The world is starting to spin out of control so fast that no one knows what may happen in the short term.

But I do know one thing for sure....whatever "the world" is clamoring for, we Children of the Light should be very suspect of.  Remember what Ezekiel said;

“‘They will throw their silver into the streets, and their gold will be treated as a thing unclean. Their silver and gold will not be able to deliver them in the day of the LORD’s wrath. It will not satisfy their hunger or fill their stomachs, for it has caused them to stumble into sin."