Something happened today with gold and silver. But just by looking at the prices you wouldn’t have seen it. The dollar fell and bounced a hair but it was the mining stocks that threw most for a loop. We had a nice pop up in metals and miners and the miners then crashed for the day and went negative even though gold and silver didn’t fall much. Then they rebounded a bit but this concerns me. Rarely do you see miners fall so hard with the dollar down so much and metals positive. So a little caution is warranted at present.
Watch the dollar for the next clue. If it is up tomorrow then we might have one more test of the lows in metals. Miners I think are leading metals a bit and today’s whipsaw I took note of and you should too. That and a stock market that once again climbs from the dead to move higher. This on some bad Empire Manufacturing data. Perhaps it only rose on oil today, i don’t know. OPEC came out with their usual rhetoric and oil shot up a couple bucks. If oil falls now will the markets rise? What will gold do? Very tough situation to call from a micro level but the dollar should show us the way. If dollar moves up, gold should go down and vice versa.
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
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