Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

gold bull market

This Morning, I Bought a
Basket of Gold Stocks

By | December 15, 2011

Since Monday of this week, the price of gold bullion has dropped $91.00 an ounce. If we look at gold for the year, gold bullion is off 17% from its price high of $1,895 an ounce reached on September 5, 2011. This is enough of a correction in the gold bull market for me to go back in and buy gold investments at what I believe are depressed prices.

China and India: Gold Buying Bullish

By | December 14, 2011

Gold prices are currently under some pressure following a decline below $1,700, but I view weakness in the precious metal not as a sign to sell, but as an opportunity to buy. The fact that gold is losing momentum at this time despite what I feel will be some tough years ahead for the European Union and eurozone along with the debt mess here is a surprise. But when the metal has increased as much as it has, there will always be those who believe that the price will retrench back to some medium-term support at around $1,600.

The Place You Need to Have Capital in 2012

By | December 9, 2011

The market chaos continues to grip the stock markets. We have the European debt crisis and a concerted effort to fix it, albeit it will be extremely difficult and take years.

The European Central Bank (ECB) cut the eurozone’s interest rate by 25 basis points to one percent—the second cut in five weeks. However, keep in mind that the ECB increased rates two times prior to the cuts. The cut will have little impact on the effort to revive the region and avoid another recession given the debt crisis. The ECB should have cut interest rates to below one percent as we did in the U.S. and as the U.K. did. The concern was that inflation in Europe is three percent, so the fear was that lower rates could drive up inflationary pressures.

Mainstream Investors Start Foray into Gold

By | December 5, 2011

Debt fears in the eurozone resulted in demand for gold coins inEurope, more than doubling in the third quarter of 2011 compared to same period of 2010, according to data from the World Gold Council. But there’s more…

Answered: Can I Still Make
Money Buying Gold Now?

By | October 19, 2011

Most investors likely fall into one of these three categories: They likely haven’t bought gold investments yet and they are thinking it may be too late to get in. Or they have bought gold investments and they are wondering if they should by more at these prices. Or, like me, they take as many opportunities as possible to buy more gold investments each time the price of gold bullion pulls back.

Why You Might Want to Look at Buying the Miners

By | September 30, 2011

George takes a look at examples of mining investments—gold, silver, copper, molybdenum—and why you might want to consider adding them to your portfolio right now.Metals are under selling pressure, but I feel that the selling has been overdone. Use the current weakness to buy, but be careful, as metals are extremely volatile at this time.

The reality is that the global climate continues to be favorable for metals given the U.S. deficit and the debt crisis in Europe (and the U.S.).

Yes, metals have been in correction mode, but I do not see this … Read More

That Gold Chart’s No Fluke

By | September 15, 2011

The precious yellow metal continues to hold up well on the price chart, as traders shift capital from the higher-risk equities to the safe-haven sanctuary of gold.

What We Saw on TV Last Night: Sell Dollars, Buy Gold

By | September 9, 2011

Michael's commentary on President Obama’s speech to Congress and the nation this past Thursday night.I know this is a financial e-letter. But I can’t pass on the opportunity to comment on President Obama’s speech to Congress and the nation this past Thursday night.

Maybe I’m the only one who doesn’t get it. Maybe these politicians are all smarter than me. I see something very wrong.

Each time the President gets up to say a speech in front of Congress and Americans via television, I … Read More

Gold: Getting Ready for
the Coming Correction

By | September 2, 2011

I’ve learned many things about investing over a career that has spanned 30 years. One of the biggest lessons is that not a single investment goes either straight up or straight down. When an investment is rising in price (bull market), there are usually dips and corrections on the way up. Just look at the long-term secular bull market in stocks that started in the early 1980s and ended in 2007—there were many times stocks “took it on the chin” during that 25-year bull market run.

The Biggest Bubble of Them All—Right Before Our Eyes

By | September 1, 2011

There’s an organization that’s been around for about 235 years. It’s more like a business today, taking in money and paying its bills. After World War II, this business really got into high gear. It started exporting its goods all over the world. It actually lent money to its trading partners. Business was booming

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