Author Archive: The Gold and Oil Guy

rss feed

Author's Website

Is Santa Coming Early for Gold & Gold Mining Stocks?

Is Santa Coming Early for Gold & Gold Mining Stocks?

If you own physical gold, gold mining stocks or plan on buying anything related to precious metals before year end, you are likely going to get excited because of what my analysis and outlook shows. Since gold topped abruptly a year ago (Sept 2011) with a massive wave of selling which sent the price of gold from $1920 down to $1535, technical analysts knew that type of damage which had be done to the chart pattern could take a year or more to stabilize before gold would be able to continue higher. Fast forwarding twelve months to today (Oct 2012). You can see that gold looks to have stabilized and […]

Continue Reading

Gold Is Not Back In Favor Yet …

Gold Is Not Back In Favor Yet …

Despite the decline this past week, gold seems to be regaining favor with global investors, as just a week earlier it had been flirting with the $1,800 an ounce mark. Quite a change from the sentiment in early summer when some investors were questioning whether the yellow metal’s decade-long bull run was coming to a close. The rebound in investor sentiment toward gold, of course, coincided with the launching of open-ended QE3 (or QE infinity) by the Federal Reserve. Since then gold has “barely paused for breath. It has, as discussed previously, touched all-time highs in terms of euros or Swiss francs. QE3 certainly seemed to worry some investors. These […]

Continue Reading

All-time Highs For Gold Price In Euros But More To Come

The past couple of weeks have been exciting in the Gold and Silver markets. On several occasions, we updated our readers about the gold price breakout, about the certainty of higher gold prices because of the globally coordinated money printing and potentially a silver price explosion that’s in the cards. Now in terms of gold price outlook, the list with analysts and entrepreneurs who expect sky high gold prices of $5,000 or more is growing; we have exceeded 50 public analysts worldwide who expect a gold price higher than $5,000 in the meanwhile. Apart from discussion about a gold and silver mania, Chris Vermeulen is focusing in his latest market commentary on the […]

Continue Reading

The Precious Metals MAJOR Breakout Part II

The Precious Metals MAJOR Breakout Part II

It has been a year since the price of gold bullion topped out and even longer for silver. Many traders and investors have been patiently waiting for this long term consolidation pattern to breakout and trigger the rally for precious metals and miner stocks. Most of gold bullion is used for investment purposes.  As a result, it rises when there is economic weakness and investors lose confidence in the fiat currency of a country. With continuing economic weakness in the United States it will almost certainly lead the Federal Reserve to act in way that is more powerful than Operation Twist which is the selling of short term securities to […]

Continue Reading

Gold Mining Stocks Continue to Disappoint But Not For Long

Gold Mining Stocks Continue to Disappoint But Not For Long

It is an endless debate for investors interested in gold. Should they buy a direct play on the gold price, either gold bullion itself or even so-called paper gold with an ETF such as the SPDR Gold Shares(NYSEArca: GLD)? Or should they invest into gold equities, particularly the larger, higher quality gold mining companies? Recent history suggests the answer is gold itself. According to Citigroup, physical gold has outperformed global gold equities 120% percent of the time over the past 5 years. Stocks of the bigger gold mining firms seem to react adversely to bad news (which is normal), but the problem is they react with no more than a yawn […]

Continue Reading

Silver Suffers The Most From Bernanke And What Is Next

Silver Suffers The Most From Bernanke And What Is Next

While the exchange traded funds for gold (NYSEARCA: GLD TRADING –  GLD QUOTE) and copper (NYSEARCA: JJC) fell today due to investors expressing disappoint at the modest response of the Federal Reserve to declining economic growth, it was silver (NYSEARCA: SLV Trading, SLV Quote) that was off the most. SPDR Gold Shares (GLD) fell in trading today by 0.89%.    IPath Dow Jones Copper (JJC) dropped 1.89%.  Plunging the deepest was iShares Silver Trust (SLV), off by 2.14%. Traders were hoping for more aggressive action by Federal Reserve Chairman Ben Bernanke.  But that will not come until after the November elections in the United States.  Remember that Quantitative Easing 2 did not begin until November 2010, […]

Continue Reading

Gold Bullion Prices Testing Important Level

Gold Bullion Prices Testing Important Level

The past 48 hours the stocks market has been on verge of a major meltdown in my opinion. The people with power who manipulate the markets are trying their hardest to hold prices up. Yesterday we saw rumors about the Fed I the WSJ that they wanted to do more easing ASAP. That news could not have come at a better time as it saved the day/markets from more heavy selling. That news also helped prop gold bullion prices up. Take a look at the 4 hour candle stick chart for a visual: Now look at what Mario Draghi’s comments have done with spot gold prices in the daily chart […]

Continue Reading

Put Your Seatbelts On, It’s About To Get Bumpy

Put Your Seatbelts On, It’s About To Get Bumpy

It was just about a year ago today when the S&P was sitting at fresh highs and everyone was enjoying a rather upbeat summer.  It was a nice summer, the markets were calm, and there was a surreal sense of optimism.  Then, in the matter of a few days, things got real ugly, real quickly. Well, it doesn’t seem like too much has changed since then.  We’ve had mixed earnings reports, ever-evolving worries in Europe, and the always looming fiscal mess in the U.S.  Once again, are we in the calm before the storm? It looks like things in Europe may start to heat up again.  Riots turned violent again […]

Continue Reading

The Next Major Move in Precious Metals Is Close

The Next Major Move in Precious Metals Is Close

After making new highs about a year ago we have seen Silver and Gold consolidate for roughly the last twelve months.  Technically, it would typically be a bullish scenario with gold from the stand point that the last 12 months’ price action was a sideways consolidation in a bullish pennant formation.  However over the last year we have witnessed a series of lower highs and increasingly tested supports levels around $150 on GLD which raises caution. With the fed pulling any extensions on further quantitative easing in the form of QE3 or other programs, the bullish case has lately been criticised.  However I am still a firm believer that gold […]

Continue Reading

Gold & Silver on the Verge of Something Huge

Gold & Silver on the Verge of Something Huge

Gold and silver have taken more of a back seat over the past 12 months because of their lack of performance after topping out in 2011. Since then prices have been trading sideways/lower with declining volume. The price action is actually very bullish from a technical standpoint. My chart analysis and forward looking forecasts show $3,000ish for gold and $90ish for silver in the next 18-24 months. Now don’t get too excited yet as there is another point of view to ponder… My non-technical outlook is more of a contrarian thought and worth thinking about as it may unfold and catch many gold bugs and investors off guard costing them […]

Continue Reading

What To Expect in the Final Week Of February for Gold, Silver, Gold Stocks & Dollar

What To Expect in the Final Week Of February for Gold, Silver, Gold Stocks & Dollar

This morning we are seeing the US Dollar index move higher retesting a short term breakdown resistance level. What this means is that the dollar fell below support and is not slowing drifting back up to test the breakdown level. As we all know once a support level is broken it then becomes resistance. So if that holds true with the current move in the dollar we should see stocks and commodities find a short term bottom and continue higher today or tomorrow from the looks of things. Gold has been pulling back the past couple trading session on light volume which healthy price action. It has done the opposite […]

Continue Reading

The Long-Term Fundamental Case for Gold

The Long-Term Fundamental Case for Gold

The Long-Term Fundamental Case for Gold “No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.” United States Constitution, Excerpt from Article 1, Section 10 A quick glance at most of the headlines over the weekend and the primary focus seemed to be either calling a near term top in domestic equity indices or a focus on the Greek debt situation. Why is […]

Continue Reading

Two short-term scenarios for the S&P 500 index and Gold’s price

Two short-term scenarios for the S&P 500 index and Gold’s price

For the first time since the last week of December of 2011, the S&P 500 Index closed lower on the weekly chart. Recently I have been discussing the overbought nature of stocks based on a variety of indicators. However, the real question that should be asked is whether last week was just a short term event or if we see sustained selling in coming weeks. The issues occurring in Greece spooked the markets somewhat on Friday as Eurozone fears continue to permeate in the mindset of traders. The U.S. Dollar Index is the real driver regarding risk in the near and intermediate term future. If the Dollar is strong, market […]

Continue Reading

Why Gold Is Shining Bright & What the Fed is Doing

Why Gold Is Shining Bright & What the Fed is Doing

Well here we are, caught between resistance in the S&P 500 around the 1,330 area and support around the 1,300 price level. My last two articles have discussed why I was expecting a top in the coming days and weeks ahead, but prices just continued to work higher. One of the things that I pride myself in as a person who trades and writes about financial markets in public is that I am always honest. If I blow a call I fess up and admit it. When I have made mistakes in the past, I always try to learn something new from them and I discuss losing trades publicly with […]

Continue Reading