12
Nov

Gold and Silver Current Thoughts 11-12-2015

From the Trading Desk

Lower, lower, lower… the precious metals just can’t seem to catch a break.  Gold has now traded lower in ten of the last eleven trading sessions.  The only positive about gold’s price action today was that it managed to find bids and bounce off the huge support level at $1,075, the low from this year as well as the six year low.  Given that the momentum in gold is clearly downward though, it seems like the $1,075 level will be tested and broken in the near term.  Silver isn’t faring much better with this year’s and the seven year low closely in sight at $14.

 

Gold got hammered in early morning trading, down over $10 then evidently a large block trade occurred and it spiked up $9.  Mining stocks and gold fell again by the end of the trading day but did stage a late comeback of sorts with the dollar moving below 99 on the index. Even the dollar doesn’t go straight up.

I wrote this in the trading room over at Seeking Alpha today;

Gold breaking down here. If you did get out of JDST, the break over yesterday’s high is a good entry point which is 36.14. It is 35.10 presently. Only real aggressive traders would buy at 35.10. 1080.80 is the 52 week closing low from July 24th. Intraday low was lower but Richard Russell has taught me what matters is the closing low. If we close lower than that mark today, you need to be in JDST.

I am including a chart below that will be included in my next book to give those of you who don’t like me calling for lower lows some real hope of what is to come with the price of metals moving higher. It may be difficult to see, but you can click on it and enlarge your screen and it should be more clear.

When I wrote my book Buy Gold and Silver Safely back in 2010, I put in Chapter 4 which has been a great outline of what we have done the last 5 years and where we are going, a graphic of Exter’s inverted pyramid. This is a money flow pyramid that shows where money flows from risky, at the top of the inverted pyramid (technically the bottom) and real wealth represented by gold at the bottom (technically the top). As you can see, there are literally trillions of dollar that will be chasing the real wealth that gold offers investors once we begin to implode. There are multiple reasons I am bringing forth in my next book Illusions of Wealth that will expand on this.

Liquidity-Pyramid-Gold

Source

Investors who watch CNBC will never see a graphic put up like this. Same goes for Fox Business channel. Candidates talk about what they will do when in Congress and once there, they have one job; find out who will hire them after they take care of their industry by getting laws passed or spending bills passed that benefit their industry. But don’t get me started on politics. That’s my 3rd book due out next year; We the Serfs! Been working 9 years on that one. 🙂

Meanwhile, in other news, the U.S. government budget deficit was more than the $130 billion expected by $6.5 billion.

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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:

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.