Is gold going to finally take off? The answer is yes, this week. I put a high degree of confidence in this. We have the Fed out of the way and they raised rates. Even with the bad data we have been seeing, the Fed ignores it and sticks with their plan of higher and higher rates. The stock market believes the Fed and doesn’t pull back much and keeps moving higher. This is about to change here soon, but it won’t be the “we’re going to the moon” with prices for gold and silver just yet. We are heading higher for sure, and this move higher will shake most shorts out of their position because it will move high enough to get many to think we are off an running with metals. But it will be for them and gold bugs another trap. Prices will crash in the deflationary credit contraction I write about in my book.
Meanwhile we have the stock market hitting new highs. This too will not last but we trade with the markets till they turn. The stock prices moving higher have put big time pressure on metals and the dollar has even moved back up some.
We should see an oil bounce coming soon and I think silver moving higher will be the first sign metals are ready to take off.
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
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
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.