My friend Doug Casey has frequently written that you’ll know the bull market for gold has peaked when there’s a picture of a golden bull tearing up the dollar or the New York Stock Exchange on the cover of Time Magazine.
I have a similar view, but with a different indicator.
I’m sure you’ve seen those TV commercials, fliers, and billboards that say “WE BUY GOLD”. The business model is simple– they take in whatever gold you can find around the house (a false tooth, granny’s wedding ring, etc.) and trade you for worthless paper money.
If that’s not bad enough, they capitalize on people’s ignorance of the gold market and offer a ridiculously low valuation, sometimes less than 50% of the spot price for gold. People are getting ripped off, and they’re happy about it because they’re able to sell their ‘junk’ for a few extra bucks.Read Full Story