Dollar down, gold and silver up. It’s amazing what two days of bad economic data can do to gold, but Friday’s miss on jobs and today’s miss on ISM got the dollar heading south once again and gold and silver both to skyrocket higher. Mining stocks also shot higher on this news but ironically the market in general is still rather bullish. We are back to bad news is good news to the market and that’s who we trade it. We ignore what “should” be happening and have to adjust our mindset to what “is” happening.
The dollar drop today was a straight line down after the ISM report. While I know economic data is weak here in the U.S. overall, and GDP is pathetic as well, I really am waiting for some events to occur in China, Japan or Europe to get the dollar moving higher (shrugging off the fact the U.S. data is weak). In other words, like politics, the lesser of two evils and choice for most thinking humans would be hold dollars not any other currency because naturally we are the worlds strongest military and one of the few countries that has no refugee, ISIS, issues and already went through a banking crisis that China still needs to go through. Plus the debt to GDP ratio in the U.S. is better than all these other countries (China has a huge credit contraction issue and I think a banking crisis coming according to my research for the book Illusions of Wealth) .
We’ll find out soon enough the truth.
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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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