Gold

Implications of Rising Gold to Crude Oil Ratio

The Gold to Crude Oil ratio is a well-known relationship with key implications for investors. Historically hovering around 15, the ratio recently hit an extreme of 24 not seen in a decade. Looking at the chart below, we can see that the Gold to Crude Oil ratio can be used as a good proxy for investor sentiment. Notice how the ratio started trending strongly upward when Lehman collapsed along with…

Yamana: Thinking Trades in Gold

Investing is not only about finding the right stock or asset class, but also finding good entry points. This is especially true of a volatile asset such as gold. Knowing what timeframe you want to invest in is also critical, as gold often shakes out weak hands in the short-term right before huge upside moves. For Yamana Gold Inc. (AUY), notice how MACD has been a good indicator of both…

A Primer on Gold Stocks

Now that a generation of stock gains has been wiped out by the big bad Bear Market 0f 2008, investors are more skeptical than ever of bull market hype. Lets face it, in a bear market most stocks go down. Nonetheless, I believe there is a huge bull market brewing under the surface in gold stocks that will explode no matter what happens in the stock market. Gold stocks are…

Gold on the move?

Gold just spiked 15 dollars in the last couple of minutes, stopping at resistance at about 940. We’ll see what the Fed announces today. Apparently the market sees more quantitative easing in our future. When all the paper shorts in gold are taken out, you will see parabolic moves in gold. I will keep banging the table about this- we are still in the early stages of this bull market….

Gold: Accumulate before liftoff

If you follow the gold market at all, you know that days like today are normal. Gold falls out of bed in the overnight market, weak hands get shaken out, and gold bashers come out of the woodwork. Now take a look at this chart. Notice the 200 day is still trending and the 50 day has yet to be violated. We’re in a bull market folks. The longer gold…