Please read the following article about gold. What is happening currently with the price of gold? What does a bubble refer to? How are they typically created? Why is gold different? Is there anything similiar? What do you think will happen to the price of gold? Why?
14 Comments
Maria Vizcaino
4/18/2013 01:17:17 pm
The link?
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Cheyenne Rose
4/18/2013 02:04:11 pm
Yes, Yes the link would help slightly...
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Maro Rivera
4/18/2013 02:37:19 pm
well i guess its back to playing dark souls
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Maria Vizcaino
4/18/2013 04:17:08 pm
The NPR article, "The Gold Bubble Is 4,000 Years Old, And it Won't End Now," by Jacob Goldstein illustrates how the gold market is on a downfall but at the same time it isn't. According to the article after the prices of gold rose they began to decline sharply. It is in a bubble that has not popped and effected everyone. The definition of a bubble is when a product's price rises to an unrational rate; people began to not think logically regarding the money and gold. This "bubble is similar to the real-state housing and the stock market bubble; prices rose dramatically until reaching a maximum point then collapsed. This, according to Goldstein, is the prediction of what will occur. I believe the price of gold will have a steady rise; that is so because we have no direct value or necessity value assigned to gold. Gold isn't a very important, necessary, industrial metal. We like it or add abstract value to it because its shiny and pretty; unless there is a rapid decrease, or increase, in the amount of gold then the price of it will not vary. Humans are the proof of animals being unreasonable when it comes to gold or, especially, money.
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Fernando Segura
4/19/2013 02:39:40 am
"The Cold Bubble Is 4,000 Years Old, And It Won't End Now," by Jacob Goldstein states why the gold market has a downfall, yet hasn't. In order to better understand what Goldstein is trying to say he makes a comparison from the gold bubble to the real estate market bubble, further stating his orginal point that it will again rise. Goldstein defines a "bubble" as the outcome of a product's rise at an unrational rate. Goldstein further says that gold is never very important, but people will still continue to buy it and it will continue to grow. He concludes with saying that gold is different, and that no one can say whether it will continue to grow or fall dramatically.
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Maro RIvera
4/19/2013 08:03:20 am
In the article "The gold bubble" has been around for 4,000 years, when it has a downfall it actually isn't going down at all according to Goldstein. In comparison to other markets such as real estate, when goes down it will usually return back up and rise to how it was before and continue rising. Goldstein sates that the bubble is an out come from the products rise in an "unrational rate", gold doesn't have to much of an importance but the people that continue buy it will most likely still buy it. All that's left is to wait and see if it will decline further or rise to how it was before.
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Parnell Rheuport
4/19/2013 08:16:45 am
According to the article gold holds its value even though it is not derived from its use in the market, "the gold bubble" won't allow for that to happen. it will only grow. and continue to do so. so long as there are people to keep the value of gold high.
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Maria Rios
4/19/2013 10:41:41 am
In the article " The Gold Bubble Is 4,000 Years Old, And It Won't End Now" Jacob Goldstein claims that after the prices of gold raised they dramatically fall back and this because of the gold bubble,a bubble is an economic cycle were prices rise dramatically until a certain point and then prices fall back. I believe the prices of gold would eventually go up again because gold has a significant value or people.
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Lauren Sanchez
4/20/2013 02:22:09 am
In the article it stated that the price of gold has dropped dramatically over the years. There is no doubt that the gold bubble will ever disappear. The bubble is defined as an asset that will have people investing in. I think that the price of gold will never go very low because people believe that it is something of great value.
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Taylor smith
4/25/2013 01:31:02 am
In the article, "The Gold Bubble is 4000 Years Old, and It Won't End Now", touches on the topic about the decline of gold prices. Others argue that this information is in fact false and that if anything, the prices are just as high as usual, or even rising! The author compares it to real estate to give us a better understanding. If the price of gold was dropping, it would then come back up and keep rising, because even though not as many people buy it, the people who do will continue to do so.
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Tim Krausz
4/30/2013 12:33:24 pm
As of now, the price of gold is on a decline. A bubble refers to the tendency of something bought and sold as investment, or, in other words, an asset, to experience a rise in prices far above a reasonable level based on the payments an investment can actually make. Prices continue to rise until the reality of a products worth once again becomes apparent upon necessary application due to one of a variety of causes. This causes the bubble to pop, and the prices fall dramatically, hurting all who invested. However, gold is not a bubble by these terms. With gold, there is no physical, inherent worth in the commodity, for its worth lies in the creation of man's imagination. As Jacob Goldstein notes, "gold does not produce a stream of income." Thus, there is no "fundamental" price to compare a dramatic price increase to. There is nothing to bring the bubble mindset back to reality, for there is no reality. Gold has been compared to a bubble in that it has seen dramatic increases in price from certain baseline prices, but those baselines were random, not fundamental. In the long run I believe the price of gold will stay relatively consistent with occasional rises and falls in price. Although gold's value is imaginary, it has been so for thousands of years, and I believe this has built a trust in gold that will not be shaken easily. Hence, investments will continue, and faith will remain.
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Cheyenne Rose
5/1/2013 06:33:47 am
In the article, “The Gold Bubble Is 4,000 Years Old, And It Won't End Now.” Jacob Goldstein states that the price of gold is increasing and falling rapidly at the same time. The gold bubble, (when the price of an asset rises to a point that can’t rationally be justified by fundamentals,) isn’t at its end and won’t be any time soon. Bubbles are difficult to explain, but in real estate, for example, you can compare the price of a house to how much you could get if you rented the house out, and that is what creates the metaphorical bubble that surrounds its value. Why is gold different? Gold is different because unlike real estate or stocks or other traditional investments, gold doesn't produce a stream of income — no dividends, no interest payments, no rent. Gold's price isn't driven by its industrial uses. I think the price of gold will fluctuate, but it will never loose true value. People put prices on things we have no reasoning for, and gold is one of the main ones.
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Skylar Nelson (Yellow Group for May 2)
5/1/2013 01:51:21 pm
In the NPR article, "The Gold Bubble is 4,000 Years Old, And It Won't End Now." by Jacob Goldstein discusses an economic term called a bubble and how it relates to gold. Gold hasn't adhered to this economic principle in the past although it seems as if it might be now. The price of gold has dropped and as a result some have wondered if the 4,000 year phenomenon of gold staying profitable. One needs to first understand what the economic term of a bubble means before answering the question of whether gold's has popped. A bubble is created when buyer confidence inflates to a point where buying it isn't rational anymore. This results in inflated values and causes the popping of the bubble and the price of the product to plummet. Gold is different though. Gold isn't a commodity like cows, wheat, or lumber. Gold has no inherent value because you can't convert it into food, shelter, or much of anything else. The only reason it is valuable is the fact that we just like it. Maybe this is because we like how its shinny. Many assets go through bubble drops. An example of this is the housing bubble. As the ratio between the prices of rented and owned houses widened dramatically to a point that didn't make any sense. This caused a historic drop back to what was accepted as a fair price. I don't believe gold's bubble has popped because gold doesn't have the properties of a asset to drop. Gold is valuable because we want it to be. We have regarded it as so for thousands of years so this mini drop won't shake the faith of people to a point where they think they should stop investing in it.
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Georgia McClain
5/1/2013 02:36:46 pm
In the article written by NPR journalist, Jacob Goldstein on the “Gold Bubble” reflects and refers to the value that we as humans have given gold over the past 4, 000 years as either sentimental value or its intrinsic value and its brief place in our economy. In the past, certain parties thought that the government should hold the equal amount of gold in their vaults while people used paper money, which was easier to carry and handle from day to day. Having the equivalent in gold coins gave the paper money “true” value. However, the face value for gold has been “falling sharply” according to Goldstein. Many think that the value for gold can go no higher and if anyone tried to do so, that the consumers would realize that the price “can’t be justified by fundamentals.” An example of a bubble was during the late 1630’s where a single tulip bulbs value was astonishing and by March on 1637, a single tulip bulb sold for more then 10 times the annual income of a skilled craftsman. However, by February, this tulip mania bubble had burst once people realized that what a bulb was costing was simply outrageous. I think that the price of gold with not lead in the tulips sad fate, but simply maintain at low cost till people find a new appreciation, so to speak for its value and rarity because its 4,000 year old history. From the Egyptians, to the time of the Romans, to the 49’s panning for gold in the streams of California. Gold will always have a place in the world.
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