This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Attention Gold Bulls: Oil Is Leading the Way

Stocks in this article: GLD USO UNG

Long-haul trucks are just now joining in, while taxis, local delivery vehicles, busses and other traditional petroleum consumers have demonstrated reliability for years. It's just a matter of time before passenger vehicles are sold with natural gas as the energy source straight from the factory.

Aluminum, copper, lead and nickel prices are all also trading near 12-month lows. If the price of gold is directly related to non-existent inflation in U.S dollars, gold is not going to climb. It really doesn't get much simpler than that.

But . . . but . . . but . . . the Fed's printing press is working overtime and dollars are flooding the market! Inflationary money supply growth may be true and wisely monitored; however, the material importance is the relative lack of dollars exchanged for products. Remember, there are two sides to supply and demand. An increase in demand (more dollars) will not result in an increase in price as long as a relative increase in supply (like nat gas and oil) occurs.

The situation in Europe only builds the gold bear case as a result of gold priced in dollars. As the euro falls in value against the dollar, demand for gold decreases. The U.S. 10-year yield closed at a record low of 1.71% on Thursday. I am not attracted to locking in capital for 10 years at less than 2%, but obviously, enough believe it's a good idea to make it happen. 1.71% yields is the market equivalent to a neon sign flashing "no inflation."

As a result, gold bulls refusing to adapt may soon become reacquainted with another song of 1980: "You've Lost that Lovin' Feelin'" by Hall and Oates.

Author does not hold a position in any stock mentioned.

3 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,778.15 +421.28 2.43%
S&P 500 2,061.23 +48.34 2.40%
NASDAQ 4,748.3960 +104.0840 2.24%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs