5
Feb

Current Thoughts 2/5/2017

When you are in a range with gold and silver, there’s not much to do but sit it out. We all know that by next year now, gold and silver will have taken off. We are waiting presently on a move lower possibly and then a big move up, followed by the deflationary credit contraction, and then the move in gold you’ll tell your grand children you were a part of. At some point you’ll say to them; “You see that boat over there? Gold bought that boat.” And I ‘m serious about that.

I have said to the buyers of gold and silver over the years that you buy your allocation into gold and sit on it, waiting for the inevitable screw ups of the government that knows no end to their spending ways. Gold is insurance against their balance sheets and that of the Federal Reserve that they borrow from to create money out of thin air. Congress doesn’t go out and dig up the money they spend, they press a button and get charged by the Fed for it’s use. Nice gig for anyone who can do what the Fed does, isn’t it? But that’s how our system works.

Granted, some of this spending has gone to make many very wealthy. But the key is, when the contraction comes, and it will, can one hold onto their wealth? This is where an allocation to gold makes sense. It is real wealth that maintains its purchasing power over time. It will always be there when you need it.

We saw the stock market get hammered on Friday to the tune of -665.75 points. We also saw gold take a hit with the dollar rebound.

In fact, the price of gold has been suppressed with this turn down in the dollar. Gold should be much higher than where it is. But U.S. Mint sales have been down, something I pointed out in an article I wrote for Seeking Alpha recently.

The Trump Effect On Gold And Guns

https://seekingalpha.com/article/4141064-trump-effect-gold-guns

 

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About Doug Eberhardt

Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534

Disclosure:

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All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.