Stocks, Who Cares? You Should

Stocks? Who cares about stock prices? You should. Here’s why.

Bullion.Directory precious metals analysis 23 December, 2014
By Terry Kinder
Investor, Technical Analyst

When one of the best economic forecasters in the world says the Dow could test 20,965 next year, you might want to pay attention.

In gold price forecast 2015, Gary Wagner noted the importance of the price of stocks, the dollar, and oil as related to gold. Essentially, Wagner stated that if stocks continued higher along with higher gold and lower oil, that would likely point to lower gold prices.

Tornados. Stocks. Who cares? You should.

I know. I know. Some people think you shouldn’t be worried about what the gold price is next year because you’re going to buy and hold 4-evah. But for those without an infinite timeline or who are interested in achieving a better entry price on your next gold (or silver) purchase you might want to keep an eye on stocks and what Martin Armstrong is saying over at his site.

If upward momentum in stocks, the dollar, and falling oil were to pull the gold price lower, it could set up a nice buying opportunity, especially if gold were to fall below support a little above $1,130.00. It has been a long time since the gold price dipped below $1,000.00. How long? The last time gold dipped that low was in October, 2009. It has been pointed out, by myself and others, that you can’t predict the future. It’s true, mostly. But you can keep an eye peeled for opportunity and be ready should it present itself.

When a world class forecaster like Martin Armstrong says the a Dow level of 20,965 could be tested, and an excellent technical analyst like Gary Wagner shows you conditions that could point to lower gold prices, you can ignore them if you want, but I wouldn’t advise it.

These types of forecasts are a bit like the tornado watch, then warning from the local weatherman. Sure, the odds of the tornado hitting your neighborhood and house aren’t that great. Why bother even issuing the forecast and warning. How often do these things happen, right? But, when your neighborhood in in the bullseye of the tornado and you’re safely in your basement, it makes you glad someone risked the ridicule and dared to forecast the future. Might Armstrong and Wagner be wrong? Sure, but if they are right you may have an excellent opportunity to purchase gold at a price not seen in over five years.

Even if you don’t own, hold or trade stocks, they can provide clues about the price of gold.

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