"Cash for Gold" as proof of no gold bubble?

The National Inflation Association, for whom I have a great deal of respect, offers this video as proof that we have no bubble in gold.  I suppose that the rationale is that there must be many gold sellers to support all these gold buyers.

OK, so there are quite a few buyers in Atlantic City.  Still, I have some serious doubts about exactly what this situation, in this location, means.

For example:

It looks like few, if any of these businesses buy gold "full time."
Who is selling anyway?  Down on their luck gamblers or investors?   I have a guess.
Is anyone selling coins or bullion, or is this all jewelry?

Bottom line is this.  While I agree with the NIA's premise, that gold is not in a bubble and has a long way up to go, I don't think the evidence in this video offers any type of proof.  And I still can't wait for their next video.


No comments:

Post a Comment