Looks to me like the Gold/Oil ratio is on its way back to 13.
See the chart, if oil stays at its current price of $91, gold will be $1183.
http://www.stockmarketsreview.com/ex...dollar_297751/
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Looks to me like the Gold/Oil ratio is on its way back to 13.
See the chart, if oil stays at its current price of $91, gold will be $1183.
http://www.stockmarketsreview.com/ex...dollar_297751/
I don't think so. This investor thinks the gold market is so bearish that it must be near the bottom..
http://www.ino.com/blog/2012/05/this...john-hathaway/
EZ,
This is the same John Hathaway that told suckers to buy gold stocks at the end of last year, saying that they were bottoming out.
Since then the HUI is down 18%.
Sorry, swiped this from another site .... just thought it would add to the debate :)
"Its because commentators are obsessed with short term technical trading patterns these days. They are just market noise. Gold up $100, down $100 who cares? You have to look at multi-year graphs to see the real trend is clearly down for all currencies against gold. But they will tell you, (with 99% of people and funds with no exposure to gold in any form), gold is in a bubble when the real bubble is US treasuries. The rise in US treasuries is not because the US is doing so well, but because the world is finally waking up to the failed euro experiment. The world hasn't woken up to the point that the USD is also in a hopeless situation... when it does gold will be priced out of the reach of common men and women. At that point the herd will dump US treasuries for the worthless things they will become.... It is great news for gold buyers that the vast majority hasn't discovered this yet."
....." in the past 12 months the US Fed has bought 61% of all US Treasuries issued by the Gov't."
Well I wouldn't count on it because gold and silver are commodities and commodities right now aren't the flavour of the day.
Goldbugs, losing money now for 8 months straight are grasping at straws, desperate for salvation, but alas with oil falling further, so will gold head south too.
"The USD in a hopeless situation".
Those who don't own the USD are in a hopeless situation, the USD index is up 4.5% this month alone.
Here's a prediction.
The Iranians will crack under the pressure, a face-saving deal will be worked out and the world will be flooded with cheap oil.
Oil and gold then tank.
Cam, a heroic post there. Gold can move $30 in an hour or two, did so today in both directions.
Skol, what about a more likely prediction?
The Iranians are acutely aware of the value of their remaining oil, and hold out. Energy prices increase while the Western world worries about their individual economies rather than working co-operatively on solving a longer-term energy crisis or situation. Gold stays high with oil, and meltdowns in several countries trigger QE3 and inflation. Gold ramps ever higher to form a bubble in several years time. Fortunes are made and lost during this period.
I think you're fogetting a few things EZ.
There's an election this year and if there's one thing Americans hate more than anything else it's high gas prices. Obama is going to accommodate the US public.
Gold has gone up for 10 years straight - time's up.
Stocks have had a lousy 10 years and when the time's right they'll go exponential, history proves it.
No problem, there's a boom in North Dakota and Kansas. There's no dry holes, the stuff's pouring out everywhere, and the USA now imports more oil from Canada than Saudi Arabia.
This article has more detail about the US elections and the likely changes afterwards. Until we see cheaper energy, not just temporary pauses in the oil uptrend, I can't see this pattern changing.
http://www.ino.com/blog/2012/05/gold...ove-is-coming/
Skol, more about those gas prices..
http://www.usatoday.com/money/indust...ces/54421804/1