Oil Crashing While Gold Soars? That’s a Blinking Red Warning Sign for a $4,000 Gold Price—and a Brutal Recession Ahead
Back when I was growing up, if something in your garage was leaking or rattling, you didn’t wait for it to explode—you fixed it. Same thing goes for the economy. Well folks, right now the engine light is flashing, and most people aren’t paying attention.
Let’s get to the point: the price of oil is dropping like a rock while gold keeps climbing. That’s not just unusual—it’s dangerous. Mike McGlone, a seasoned voice over at Bloomberg Intelligence, is warning that this massive divergence is a signal we’re heading straight for recession territory. And if history has anything to say about it, gold is about to go much higher—think $4,000 an ounce.
📉 The Biggest Gap Between Oil and Gold in a Century
You’d have to go back nearly 100 years to see the kind of price spread we’re seeing now. Oil is down 21% this year while gold has shot up 26%. That’s a 50% swing between the two—one of the biggest in modern history, according to McGlone. In simpler terms: energy prices are crashing, safe-haven assets are booming. That’s not a “buy the dip” moment—that’s a “brace yourself” moment.
Oil just dipped below $56 a barrel earlier this week. Even with a slight bounce, it’s still weak and sitting under critical resistance. Meanwhile, gold surged past $3,400 an ounce after flirting with support around $3,200. That’s a sharp 2% jump on Tuesday alone, following a 3% rally the day before.
And this isn’t just some short-term blip. McGlone points out that gold’s price action looks a lot like what we saw in 2007 (right before the financial crisis) and 1935 (deep in the Great Depression). Those aren’t years you want to be echoing.
🔥 Gold to Hit $4,000? Here’s Why That’s Not Crazy
McGlone sees gold breaking through to $4,000 as the next stop. He’s not pulling that number out of thin air—it’s based on historical patterns and what’s playing out in real time. Crude oil is falling into what he calls its “low-price cure” near $40, and gold is gaining strength with no major resistance until it hits $4,000.
And here's the kicker: he thinks gold could hit parity with the S&P 500, meaning the price of one ounce of gold might equal the entire value of one share of the stock index. That only happens in crisis moments. Last time we got close? Back in 2011, gold hit $1,900 while the S&P 500 was tanking. Right now, the gold-to-S&P ratio is just 0.64x, so we’ve got room to run.
🛑 Don’t Wait for the Headlines to Catch Up
While Wall Street and the media twiddle their thumbs and hope the Fed can "engineer a soft landing," you and I know better. The writing’s on the wall: gold isn’t just outperforming—it’s warning us. The stock market is on shaky legs, energy demand is falling, and the Fed’s smoke-and-mirror tricks can’t hide the rot forever.
And here’s what really matters: McGlone sees a firm floor for gold at $3,000. That’s your safety net. That’s the market telling you: “Gold isn’t going anywhere but up from here.”
🛡️ What Should You Do Right Now?
This isn’t just another market update. This is your wake-up call. If you’re still sitting on nothing but paper—bank deposits, stocks, or heaven forbid, digital FedNow dollars—you’re playing with fire.
Now’s the time to make a move:
👉 Download Bill Brocius’ free eBook, “Seven Steps to Protect Yourself from Bank Failure”
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👉 Protect your wealth with physical gold and silver.
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We’re not just watching history repeat itself—we’re living through it. But unlike most folks, you’ve got a chance to prepare. Don’t waste it.