There is no end to the speculation of where oil prices and gold prices will go in the near term. Even Dennis Gartman, gold bear, of the Gartman Letter is saying that gold is under priced with regard to oil. Yet some may not see that as a reason for gold to go up. Others are saying that the fundamentals of oil simply do not support prices this high.
So must oil drop? It’s back in record territory this morning; although only in nominal terms. Inflation adjusted, oil’s high is more like $240 per barrel.
Will gold go up? Just as everyone seemed convinced that gold was poised to take out its 200 day moving average and possible go as low as $780, gold has spiked nicely and sits at just under $900 as I write this.
There is always the possibility that both go up, just gold more than oil.
Don’t bet your SUV that we’ll see cheap oil again in our lifetime.
Maybe April’s correction shook you up, maybe shook you out, maybe scared you away.
The ones who make fortunes are the ones who buy when it makes them sick to do so.
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