Oct
7
2014

Gold and Silver Outlook 10-07-2014

In yesterday’s Current Thoughts I noted that because of increased sales we “may mean a continued move up tomorrow and the possibility of some short covering if indeed we do get a move higher.” We did get a small move higher today in gold and silver hit $17.60 but fell from there. What was interesting is the mining stocks did not follow through but rather sunk to lower lows. This could be in part though from the massive sell-off in stocks today.

If mining stocks actually lead gold, then gold could reverse course and continue its downward trend after just two days up. This is my guess, but purely a guess at this point based on how I saw such weakness on a day after the dollar got hit hard. Still keep an eye on the dollar. 10 year sunk to 1.39%. No sign of higher rates as I have been saying.

GLD and GDX have a score of -100 while silver is maintaining its -90 score. Investing in these are still apropos to catching knives.

10-07-14 GLD Chart

10-07-14 GLD Chart

10-07-14 SLV Chart

10-07-14 SLV Chart

10-07-14 GDX Chart

10-07-14 GDX Chart

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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.