Gold Gold Gold

I found this interesting survey box result from the community journal of Wall Street Journal. Even though gold is at its all time high breaking record every other day, a lot of people (73.5%) still think there's room for gold price to rise.



To me, this totally feels like a bubble, it just sounds exactly like the pre-crash of internet bubble (2001) when all internet & technology stocks are at its all time high and people still freaking think that there's plenty of room to grow.

For the case of gold, is there really a real demand for such precious metal? I don't think so, people are parking their money into gold because there's a false believe (gold bug) that gold's value is always stable rising up steadily and would not fall. That's very wrong, most recently, during the crash of 2008/2009, gold's price is so volatile that it fell to a low of less than USD 700 per ounce. Now it's over USD 1350 per ounce. That's almost a 100% rise in less than 2 years. Is that not volatile enough?

For some people, they think the US economy is so bad and the US dollar is depreciating like hell and there's no other better ways to place their money, so they dumb it into gold. And yes, that's the truth, money is flowing into commodity assets and emerging markets such as China, India, Brazil, and South east asian nations such as Singapore, Malaysia, Indonesia and Thailand.

For those that have profited from the rise of gold, it's wise to get out slowly from now. I would be selling my gold assets and probably finish selling all of them before it hits USD 1500 per ounce if it ever happens.