Nikkei closes at highest level since 2007

From about 2 years ago, and until about 6 months ago, there were scads of posters bragging about their gold holdings and how all the other assets were on the verge of collapse.

They seem to have faded into the woodwork, with equity prices at record highs.

It's great seeing the yen dropping in value everyday, Wonder how far it can collapse now?? Everybody is selling it like crazy. There is no floor to the yen's value and absolutely no factors in its favor. Nobody wants it. A dead currency. Happy days for everyone!

Jeff, the goldbugs have been quietly buying up gold while the prices have been artificially suppressed. Meanwhile, the stock bubble has been greatly inflated. What is it that happens to bubbles? Poof! While the stockholders are holding slips of paper, the goldbugs have something a bit more substantial in their grasp. I'm up to my weight in the yellow metal.

"While the stockholders are holding slips of paper,"

Stockholders own a portion of corporations, which includes plants, equipment, real estate and other assets. Gold is a metal with no productive purpose other than a small number of industrial applications and a material that can make jewelry. It no longer plays any monetary role nor is it a hedge against geo-political tension. It costs $$$ to store and pays no dividends.

Gold's value is largely determined by what traders and hucksters think it should be worth. Talk about "poof."

Gold's value is largely determined by what traders and hucksters think it should be worth.

This is true of everything. Including corporations. Value is determined by what people think the value is.

"This is true of everything. Including corporations."

No it isn't. Corporate assets are normally and regularly assessed by teams of accountants and other auditors, who publish the data for public scrutiny."Traders and hucksters" aren't part of the process.

Corporate assets are normally and regularly assessed by teams of accountants and other auditors, who publish the data for public scrutiny.

Yes. They assign a value which they think that it is worth. Traders either agree, and buy stock in that company, or don't agree, and don't buy stock.

All value is determined by an agreement of a buyer and a seller. If they don't agree, then the item in question does not have that value.

It's both a really simple concept, and a really difficult one.