Current thoughts 12/4/16

Now that we have Italy out of the way, what the heck is gold going to do? It jumped up $10 an ounce after the vote on a sharp dollar bounce, then fell to flat and is presently $3 lower on the futures market. You would think a no vote for consolidation of power, which was rejected, would be a good thing in that the elite can’t get their way like they thought they could in Great Britain and Brexit and the U.S. with Trump, so we’ll just have to see what the results will be as so far, it hasn’t been good for metals but has for the dollar.

When the dust settles though, I think overall we have to be close to bottoming in metals and reaching a top in the dollar and the stock markets. Reversals are never straightforward, but we have been trading this way with success last week.

There are indeed physical buyers of gold who buy the dip. That is always what I recommend. But when you buy the dip you are buying weakness. The metals are indeed still weak and a vote in Italy it seems hasn’t helped the metals, but the first reaction was favorable. I simply think it’s a confused market right now, but as I have said all along, we will trade inverse the dollar and I think the dollar is topping. The Euro though has issues and more votes will come that will continue to pressure the Euro. Let’s face it, what would you rather have your money invested in right now, Euros or U.S. dollars? I think most would say U.S. dollars along with some gold as insurance.

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About Doug Eberhardt

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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