Thankfully, as stocks continue to peg fresh record highs, oil is doing the exact opposite. Prices at the pump have been melting lower and are going the opposite way of the stock market. This is great news for the consumer.
Years ago it seemed the consensus was a massive inflationary event was coming and you should be buying gold or silver. Like most failed trades, they look good at the start. Gold and Silver are now reverting back to their 2009 prices.
Gold, Silver, and Oil continue in a down trend. Just like shorting this market is painful, trying to catch the knife on falling prices.... you might lose all your fingers and still never catch the bottom
I think its important to note investors are forgetting about precious metals as stocks rally. It's all about making money and anyone long Gold or Silver the last couple years hasn't been doing so well.
IF you look at the trading action as Gold hit new highs in 2011, there were some large candles and volatility. It was a blow off top. When Gold bottoms we will likely see similar trading action. Right now its just a slow steady bleed lower.
Here are a few long term charts. I think all three $USO, $GLD, $SLV have a chance to reclaim 2009 prices.
