Commentaries

Stocks at Rock Bottom, Gold at Top – Is a Bigger Correction Underway?

Nowadays one can safely say that gold has come around full circle, its shine untarnished by the passing years as it has reclaimed its respected place at the heart of the financial system. The debate over a return to the gold standard has resurfaced in the last few years in a way that has not been seen in the four decades since 1971 when President Richard Nixon decided to severe the dollar’s ties to gold. Gold is shining brightly

After reaching an all-time high well above $1,900 earlier this week, gold is now about $180 lower, just two days later.

Thank goodness for the spot price of gold. This is the one sector of the stock market (and global economy) that’s flourishing within all the turmoil. Not only are the fundamentals for gold very strong, but they are actually improving, as price inflation is going up in the world’s biggest economies.

Source: Zig Lambo of The Gold Report  (8/24/11) If gold equities are on sale, the stocks Carlos Andres follows as publisher of the Frontier Research Report are on clearance. Andres seeks out stocks that have been unfairly pummeled, offering extra upside for investors. In this exclusive interview with The Gold Report, Andres identifies some top picks … Continue reading

Uncertainty and fear are the mother’s milk of the metal’s market. Our pundits, politicians and professors have given us plenty of reasons to question whether these supposed savants are steering with a working compass. One day headlines proclaim, “Bernanke Ready To Do More If Needed”. Then we later read that the Professor is playing down … Continue reading

As I have been warning investors for many months, stocks have now entered stage III of the secular bear market. Gold on the other hand is now in the final parabolic phase of a 2 1/2 year C wave advance.

Gold is in the second phase of a Bump-and-Run Reversal Top pattern, which typically occurs when excessive speculation drives prices up steeply, and is now at a critical juncture where substantially lower prices could be realized. Let me explain.

One month ago, the SP500 was trading at 1,345 points. Today it is trading at 1,128 points, or down over 16%.
One month ago, Gold was trading at $1,601. Today, it is trading at $1,891, or up over 18%.

Gold has reached an all-time high well over $1900 yesterday, so the Gold bugs have reason to celebrate.