More and more buzz these days about gold fever. See: Gold Fever strikes mom and pop prospectors in US west
“The poor economy and a record price of gold have renewed interest in prospecting in Western states where public lands are rich with deposits and small-scale operators are all but free from government regulation.”
“…When gold goes over $1,000 an ounce, everybody becomes a miner,” said Russ Bjorklund, minerals manager with Salmon-Challis National Forest in Idaho”
“…We've got all types: individuals out there with pick and shovel and companies with heavy equipment”
“…You start finding a little gold in the pan—that's when gold fever kicks in. It's like a drug and you're ready to work all night”
“…it doesn't replace a full-time job with benefits, but you work hard enough at it, you might get lucky,”
“You might get lucky” sound like a rational investment thesis to anyone?
Just daring to express scepticism about gold-love today is sure to insight the anger and attack of many ardent worshippers. However as George Soros pointed out this week, the gold rally can continue for a while, but it is definitely not a “safe” bet: “It's certainly not safe and it's not going to last forever.”
No rational investor can afford to fall in love with any one theme or asset class. Buyers beware.