In the next few months I will have my new book “Illusions of Wealth” out to the public. If you are interested, you can sign up to be notified here: https://illusionsofwealth.com/ (click link at the bottom). Thank you!
Gold tried to take off on Friday but it just couldn’t stay above the $1,100 level. The dollar broke below 97 and that was a signal gold needed to bounce. But it was short lived and the dollar moved past 97 again and gold below $1,100 where it stayed all day. You can see how the dollar touched the low from earlier this week but bounced right back up. We need the dollar to break down more for a bounce in gold (and silver).
I have been saying that lower rates were ahead of us and the 10 Year Note fell 3.26% on Friday settling at the low of the day 2.18%. I thought rates rose with a strong economy?
Supply Issues for Gold and Silver
I said last week that sales have been brisk with this recent downturn in metals. Because of this, premiums have risen on some of the metals and orders for many products have been pushed back 2-4 weeks depending upon dealer and supplier. A couple years ago when we had a severe dip in the metals, customers had to wait up to 8 weeks for some products as premiums soared.
The reason I mention it is because as many of you know, I have been calling for lower prices in the metals for some time now. Many have held off purchasing gold and silver because they are waiting for my “all in” article. I do have a large list to contact when I write that article. I want everyone to know that if metals do fall to where I presently think they can, and if supplies are somewhat of an issue now, please know that supply will also be an issue as we move lower. People don’t sell their metals, they hoard them. Many view it as insurance and know they have real wealth in their possession, not an “Illusion of Wealth.”
Once we break lower in prices you can expect premiums on many products to rise, negating any decrease in pricing, and also expect longer waits for delivery of metals. I will try and write my all in article BEFORE things get out of hand. I’m just putting the warning out now so you know what is coming when the real gold rush begins.
Related posts
About Doug EberhardtDoug 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.