Gold speculation or gold investment?

Gold price increased from $1,650 to $1,800 in a matter of days.

Is this gold speculation or gold investment?

It certainly looks a lot more like gold speculation than gold investment.

Many people may not even know why stock market crash all over the world, and why people turn to gold.

They just know that everyone is buying gold, so they join in the fun.

At this rate, gold speculation will lead to a gold crash.

CME is definitely not happy with the gold speculation.  It hikes the margin for gold future by 22.2%.

The recent hike is to prevent gold price from spiraling, and to prevent a spectacular gold crash in the near future.

CME had sent the price of silver crashing from a high of nearly $50 to just over $30.

If history were to repeat, we may have a chance to see gold crash in the same spectacular manner.

While the long term trend for gold and silver is positive, since the Fed has announced a loose monetary policy for the next two years, the short term increase in gold price is not sustainable.

It seems that the gold speculation has reached a feverish pitch.

If you want to join in the fun of gold speculating, you must be prepared for the gold crash.

Most people think that they can get out of the market in time.  Some may.  Most do not.

If CME hikes the margin requirement four times in a week, as it did to send silver price crashing, you would expect gold speculation to stop immediately.

Gold speculators do not have enough money to meet the margin calls for maintenance measure.

Is now the best time for gold investment?

Looking at the long term trend, the answer is that gold and silver prices will go up.  However, if you want to maximize profits, wait a while for the gold price to stabilize.