3 hours ago
Tuesday, September 25, 2012
Gold Is HOT; Why?
I just heard on the radio that Facebook stock has dropped again. As far as I know I don't own any stock in Facebook, unless it is in a Mutual Fund somewhere, but here is why I find this interesting.
The Facebook IPO (Initial Public Offering) was the only- or one of a very few IPOs- that the insiders shared with the real public.
And it tanked.
Here is the question: is it cause and effect or effect and cause?
What I mean is, did the stock tank because the general public was allowed access, or was the public allowed access because the insiders KNEW it would tank?
Interesting question, ain't it?
I have the same question about gold. I know you've heard the ads; Gold is set to explode; Gold is set to double in value; Hurry- Buy Now!.
If there is such a fortune to be made in gold, why are the insiders sharing the information?
Or is it, as I suspect, that the bottom is about to drop out of gold and the insiders want out?
That puts a different spin on the issue, doesn't it?
I could be wrong. Maybe gold is ready to explode. But how many other investments that are ready to double have we been let in on?
Or how many other IPOs that skyrocketed from their original price? Doesn't it seem strange that we are only allowed in on the ground floor of those investment products that have then proceeded to the basement, and not the penthouse?
But maybe I'm just cynical.