Lyric discussion by ChrissyTina 

Cover art for Castles Made Of Sand lyrics by Jimi Hendrix Experience, The

I think the song describes situations and dreams that were based on false beliefs. Jimi's point is that because these dreams were never rooted in anything real and they unravel by themselves. I love this song. I hate to make it this superficial, but its a great breackup song because it puts things into perspective.