Gold Bubble Over = More Demand?

[rockyoyster]

Here is something I received from APMEX regarding demand for precious metals from them..

Due to the OVERWHELMING demand for precious metals, our online ordering system has been unable to keep up with our customers’ needs. We have had to disable the APMEX ordering system to allow us ample time to upgrade our site to accommodate the increased demand. We apologize for this temporary problem. In the mean time, we will be accepting telephone orders for the following items only as we have them available:

• 1 ounce Gold American Eagles
• 1 ounce Gold Canadian Maple Leafs
• 1 Ounce Gold Krugerrands
• 100 oz Silver Bars
• Misc Generic .999 Fine Silver
• 90% Coin Silver

During this time, we will have a minimum order of $5,000. We regret we have had to make this drastic change to our ordering process and rest assured, we are working expeditiously to correct the problem. As soon as we have our new site up and running, we will notify you via e-mail when you can again place orders online.


If you have existing orders with us, we have in-stock all items needed to fulfill your orders and are shipping them as scheduled. Once our new site is functional, we will be able to activate our complete inventory line again.

Respectfully,

Scott Thomas
President & CEO

www.APMEX.com

P.S. We are actively looking for new bullion inventory to purchase. If you have items that total $2,500 or more and are interested in selling, please call our trading offices at the number listed above. We are paying strong numbers for ALL Precious Metals!

Would you guys see the P.S. part as perhaps the initial stages of a bubble in gold? Going from strong numbers to perhaps at some point irrational numbers?

[c1ue]

I think one possibility which has not been examined in detail is a divergence in the economy between rich and everyone else.

Specifically, that in the past 'everyone else' had money and so were needed to participate in bubble formation.

However, now that money is increasingly concentrated in the 'rich', that it is no longer necessary for 'everyone else' to get sucked into bubblevision - especially as 'everyone else' is burdened by home and credit card debts.

Why does this matter?

Because if the rich people are the ones buying all the gold, but no one else is because they don't have money, we could still have a bubble but without the MSM/J6P participation seen in the tech and real estate bubbles.

Wouldn't that be the fox in the henhouse?

[grapejelly]

also this is VERY interesting from what I will call the rock vs. paper game...in this case, paper demand is falling due to deleveraging...but the actual physical market is almost totally separate. How can this be? It can be if physical delivery is NEVER taken. I know that it is in the case of ETFs, allegedly, but who really knows.

The bubble...the gold thing isn't a bubble. I mean, 300% in 7 years? You call that a bubble?

Gold is far, far from a bubble. Even a mini bubble such as wheat and corn and beans have been in.

Now all commodities are falling fast and deep. But it has nothing to do with physical demand for gold and silver.