2
Dec

Deflation Will Drive The Price Of Gold Lower

In my October 29th article What Will Gold And The Dollar Do Next? explaining what I see next for precious metals I said the dollar will move past 100 to 120 and that gold will fall below $1,000 an ounce during this move. The dollar was just over 97 on the index and has moved to a high of 100.09 as of Nov. 25th, or almost 3% in one month. Gold Meanwhile has fallen from $1,159 on October 29th to $1,070 as of Nov. 25th or a decline of 7.68%.

(click to enlarge)

(click to enlarge)

Ever since I wrote my first book Buy Gold and Silver Safely in 2010 I have been in the deflation camp. I spent a month straight researching Chapter 4 of that book where it explained in detail the potential of a deflationary credit contraction. At the time there was an ongoing debate among many on whether we were going to experience inflation or deflation. It is clear now we are in deflation yet investors still don’t know what that means or how it could affect their investments.

Before getting into detail on what I see going on with deflation, we must first start with the proper definition of deflation……..

Read more here on Seeking Alpha.

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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

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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.