GDX was 29.94 when I said gold miners decline coming. It’s 24 now, a 19.8426.61% decline.
JNUG was 26.61 and is now, a 53.44% decline.
Dollar is still the key for gold and the Pound hit a 31 year low and Yen a 2 week low. What about the Euro?
Dollar cost average into your allocation takes away the guessing game but know your risk on leveraged ETFs.
Now that gold has broken below the $1,300 level ($1,276.80 as I type with silver $18.05), precious metals investors are wondering whether the bottom will fall out or should they go “all in” and buy as much gold and silver as they can because some say the dollar is going to crash. See my article that debunks Jim Rickards theory on the dollar death; The Fear Mongering Crowd – Dollar Death On September 30th Edition – SDRs
For me, the next move for gold depends on your outlook on the dollar and mine has been pretty consistent that gold will act inverse to the dollar but I also lean long the dollar as long time readers know. They also know I don’t write an article each week here on Seeking Alpha to make claims of what gold will do next, but what I try to do is just bring awareness of what I see so you can make good decisions with your precious metals investments.
Below is the chart from my July 19th article Gold Miners Decline Coming And Caution On Buying Silver Coins where I cautioned those long VanEck Vectors Gold Miners ETF (GDX), when it was 29.94, that some trouble may lie ahead.
This article continues on Seeking Alpha and you can find it here: http://bit.ly/2dH4V40
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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