This Day On The Street
Continue to site
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

Get Ready for $1,200 an Ounce Gold

NEW YORK ( TheStreet) -- The gold bulls had an impressive run. Like the start of 1980s attempt at $1,000 an ounce, September of last year almost made it to the psychological $2,000 mark.

"History may not repeat itself, but it sure rhymes a lot" (thanks, Mark Twain). It's difficult to find a statement that captures the bull and bear markets better. Yet, even with falling gas prices, a stronger dollar, fiscal crisis in Europe, dropping demand for bullion, lower commodity prices and a downgrade of Japanese debt, some believe inflation is around the corner.

Inflation of course is the result of greater dollars chasing relatively fewer goods. It's easy to see the impact of inflation with the price paid at the pump, the grocery store, housing and labor costs. You don't have to take my word for it, government reports state the same.

From the latest Consumer Price Index report (April 2012):
The 12-month change in the index for all items was 2.3 percent in April, the lowest figure since February 2011. The index for all items less food and energy also increased 2.3 percent over the last 12 months. This is the first time since October 2009 that the 12-month all items change has not exceeded the 12-month change for all items less food and energy. The food index has risen 3.1 percent over the last 12 months, and the energy index has risen 0.9 percent.

Granted, I understand, if there is one thing a true gold bull doesn't place a lot of faith in, its government reports. But you don't have to believe the report: A trip to the gas station and last winter's heating bills tell the story just as well.

For that matter, it doesn't take much more than a look at the Gold Miners to understand what the situation is for gold. Take a look at gold ETFs like Vectors Gold Miners (GDX), Junior Gold Miners (GDXJ), Gold Trust (GLD), and the iShares Gold Trust (IAU) to understand the pain investors are enduring with gold-related stocks.

Starting with the monthly chart, GDX has broken trend line after trend line and a target price of under $32 before the current trend line break fulfills. The weekly chart displays the 60-week moving average crossing below the 90-week moving average along with many other bearish technical indicators.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GLD $121.65 -0.46%
GDX $23.89 2.10%
UNG $6.72 -3.00%
TSLA $212.60 -4.50%
YHOO $36.87 2.40%


Chart of I:DJI
DOW 17,644.21 -7.05 -0.04%
S&P 500 2,053.26 +2.14 0.10%
NASDAQ 4,729.1960 +3.5570 0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs