Dollar up, gold down. We resumed the relationship that I have been saying would eventually get on track again. The dollar has moved from 100 to 95 and now is back to 96. Nothing goes straight down and nothing goes straight up but it doesn’t take much to speculate that there are many problems in Europe and the Euro and Pound alone are suffering from the banking and overall economies that just can’t survive a system where Germany takes care of everyone. That’s why those in England want out of the European Union and to go it alone. But even they will have issues which is one of the reasons we saw the Pound down versus the dollar yesterday.
Gold is opening down $5.20 in Asia to $1,218.70 and silver couldn’t get past $16 resistance today and fell hard to its current price of $15.24. If you think silver will outperform gold in the short term, you will get caught in the deflationary trap. I do 100% though still think silver will double before gold doubles when the metals finally do begin to take off.
A Glimpse Into CBO Projections (included in my forthcoming book)
I start out the section of my book Illusions of Wealth on economics with a statement where just the mention of the word “economics” will put people to sleep and to bear with me as they read that chapter. But I do make it entertaining enough and simply get people to think so I am confident it will flow nicely.
The funny (sad?) part to me about all of the great minds that our government chooses to listen to who predict the future, like those at the CBO whose projections are trillions off the mark. Not billions, trillions. The CBO now says the nations debt will be $24 trillion by 2026. It’s about $5 trillion away from that now. They projected in 2013 the U.S. national debt would be $16.6 trillion by 2020. See what we are working with here? How is it you, I and others can see the flaws but they can’t? I guess all one needs to do is look at who the Republicans chose to be president in 2008, John McCain, who knew absolutely nothing about economics. When Obama ran in 2008 and was criticizing Bush for his $4 trillion of spending he called it “unpatriotic.” So what is $8 trillion of spending since Bush then?
End of rant and just a taste of what I am writing about from a government/economic perspective.
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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
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