Tag Archives: mining

A series of strong economic indicators last week sent the stock market higher and gold lower, right to the $1,300 level it has seen a few times in recent months. Is this a new floor for gold? We look at the good reasons that suggest just this, and why right now could be your best last chance to buy gold.

Here’s the latest in the gold markets: China and India alone are consuming all of the world’s supply faster than it’s being mined – what could that mean for prices? Coincidentally, global gold mines are becoming harder to find as mother lodes have become depleted in the last 10 years. Finally, we take a look at the relationship between gold and oil prices; how do they perform as the dollar continues to decline in value? Find out right here.

With the Dow crossing 14,000 and investors seemingly infatuated with the stock market’s latest rally in the last few weeks, gold closed sideways last week and finished at 1,668.25. But before anyone falls too hard for stocks, some perspective may be in order. First, red flags and “sucker alerts” abound as reports surface that insiders have been nine times more likely these past few weeks to sell shares of their companies than to buy new ones. This doesn’t bode well for the long term, not when insider selling usually foretells a drop in the markets. Second, put the value of the Dow today against the price of gold – despite this rally – and the Dow is down since 2009. The moral of the story? An abrupt end to this “sucker” rally could be near. But even if stocks continue to grow, history suggests that gold is likely to continue to outpace them. Keep your eyes wide open.