Gold seems to be finding some major resistance to move lower at the $1,200 mark and silver at $16. The dollar is also struggling at present to make the next move up and it’s quite possible we get to retest the highs in gold and silver again and lows in dollar before we do what I believe to be a complete collapse in metals and break of 100 in the Dollar Index. I know this may sound crazy to some of the new people reading this but all of the data that I research and write about, especially analyzing things from a global perspective points to this kind of price action.
I can’t get behind a $100 move in gold in one direction south without some sort of a reversal on the horizon. We may see one more break below $1,200 before moving up but with gold at $1,213 as I type, we might not get it. This move below $1,200 for a moment occurred with U.S. markets closed and is no surprise. The dollar didn’t even budge that much when it occurred.
I do not a good analysis of this week’s COT Gold Report from Hebba Investments where I have made a few comments points to an unprecedented buying of gold long contracts at the fastest rate in the reports history by larger commercial traders.
Again, any move up will be followed I believe by a move further south for the metals and a dollar that will climb by over 20% over the Euro, Yen and other currencies as these countries still have to face the music of their high debt ways which are much worse off than the U.S. despite them leading the world in total.
You’ll notice more and more stories about gold moving higher with the last run up in price. You see the always bullish gold King World News out Jim Rickards and what he has to say about gold. Yet Rickards is simply selling services and of all people to team up with, Agora financial is using his latest book on gold to push their services where I’m sure he gets a piece of the very large pie of fear they use to get investors to subscribe. Here is their collaboration where if you sign up you get Rickard’s book on gold “The New Case for Gold” for $4.50 but will be pushed to subscribe to the various Daily Reckoning/Agora Financial subscriptions. http://research.agorafinancial.com/research/html/awn_caseforgold_0316/?code=LAWNS589&n=AWN_caseforgoldrgs_0516&ver=3
One of the critical reviews of Rickard’s book was “Would have liked it to have more info on the dos and don’ts of buying gold.” For those that don’t know, my book Buy Gold and Silver Safely covers this are quite well and can be found on Amazon.com.
Speaking of King World News (KWN), they have an alert from perma gold bull and Newmont Mining Corp. CEO Pierre Lassonde calling for gold to above $10,000. KWN claims that this is the first time he has ever claimed gold to go this high but when gold was $1,700 in November of 2012 he was calling for gold “to hit $13,000 in 10 years.”
Here are more of his calls where every year he has been bullish on gold or gold mining stocks even claiming he put $10 million into mining shares in 2014.
August 2011: 100% Chance Of $2500 Gold In Two Years
http://www.businessinsider.com/pierre-lassonde-gold-2500-2011-8
October 23rd, 2012; The Perfect Gold Storm “Printing of money drives gold…”
http://www.grantspub.com/files/presentations/Lassonde%20Fall%202012.pdf
January 23, 2013; On gold stocks, Lassonde commented “…if you look at the flip side of it, even though the gold price is up substantially, we are not seeing production increase, therefore that is very very supportive of higher gold prices. The companies that have the higher margin mines, they are the ones who are going to benefit. The companies that have the higher grade mines are going to make a tonne of money, and those stocks are going to perform.” http://tinyurl.com/j8r…
Nov. 5, 2014 “I just put $10 million into the market today in gold equities. I can’t help myself. From now until early December is the best time to buy shares because people are literally throwing the shares away. By the end of December the market will turn around, and at some time between January and March you will double your money.” http://kingworldnews.com/pierre-lassondes-shocking-comments-on-gold-silver-plunge/
Peter Schiff also continually calls for higher prices but uses $5,000.I think gold can go to $5,000 and $10,000 too. In fact, this is the first time I have ever written such. But I have been dollar bullish for quite some time and have warned investors of what I see rather than repeat a mantra of gold higher. You and I both know gold is going higher in time.In
October 2012, Pierre Lassonde took the opposite side of the deflationary case (my view) presented by Van Hoisington. http://mcalvanyweeklycommentary.com/october-24-2012-a-meeting-with-the-brightest-minds/
My goal is to not make outrageous predictions and put all your money into gold and silver. I do think they are destined for higher prices and can easily make the case for such. But I also don’t ignore the Fed, don’t ignore the dollar and don’t ignore the data which I just completed 400 pages plus for my next book Illusions of Wealth. I simply call it like I see it and give you as much information as I can so you can agree or disagree, but hopefully seeing both sides of the proverbial golden coin.
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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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