What’s the matter with gold? If you have followed me long enough you know I have been saying the potential is for gold to get to the 1240-1250 level and today we hit 1262. So a little more downside is there. Sentiment also needs to be lower for a bigger bounce potential and shake out more weak hands. Pretty easy to do as many chase the fairytale called bitcoin.
But gold will bottom out and we’ll move higher sometime probably after the Fed into next year. We did the same thing the last 2 years when all the tax loss selling is done.
The USD/JPY hasn’t moved up as much as it should have after hitting our target of 114.50. It fell and now is bouncing up again. The dollar was expected to move up more too and it hasn’t.
Right now gold investors have to be patient. It’s not like the National Debt is decreasing. And a silver quarter from 1964 can still buy you a gallon of gas in 2017. A 1965 quarter can buy you 25 cents of gas. Nothing in the years to come will change that dynamic of silver’s purchasing power versus that of fiat money. The real “illusion” is that governments do it to us without us really noticing.
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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