I could simply make one statement today and leave it at that; the dollar was weaker today, pushing towards the 94 mark and gold shot up higher. Any questions?
Retail data came out negative and producer prices fell more than expected causing the greenback to lose steam and precious metals to pick up steam continuing their short term trend higher.
We have been discussing this inverse relationship with gold and the dollar and I think it’s important for investors to know what the dollar really is once again.
The dollar is a representation of a basket of currencies and faith in the U.S. dollar over those other currencies. If there is more faith in the dollar over them, this puts pressure on gold.
I am dollar bullish and gold negative for reasons we are mired in a deflationary credit contraction and if you want to know more about this, it’s all in Chapter 4 of my book Buy Gold and Silver Safely I wrote in 2010. http://www.amazon.com/Buy-Gold-Silver-Safely-Learn/dp/0982586116/ref=tmm_pap_title_0?ie=UTF8&qid=1390268867&sr=8-1
If you haven’t read that book, it’s a good place to start.
I am furthering my thoughts on gold, silver, the dollar and the markets in a new book, Illusions of Wealth. You can sign up for notice of the pre-sale for this book here: http://illusionsofwealth.com/
Interviewed by Michael Rivero of whatreallyhappened.com
Today I was interviewed by Michael Rivero of whatreallyhappened.com You can listen to the interview tomorrow by clicking here: http://gcnlive.com/JW1D/index.php/archivespage?showCode=109
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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