Now that the National Debt is over $21 trillion, what more do you need to signify an investment in gold makes sense?
With the Fed meeting tomorrow, and gold down to almost $1,300, I think we are about a day from a bottom and a higher price in gold on its way with gold heading back up to $1,370 finally. From there we’ll decide what’s next, but the dollar has been weak overall and it seems the Fed likes it that way. Anytime the markets get weak, the dollar mysteriously gets weaker and the market rebounds. Like clockwork.
Silver is about ready for a bottom as well.
Here’s what I see for tomorrow’s first Fed meeting under the help of Powell.
1. Everyone knows the Fed will raise rates.
2. Everyone is looking to the language.
3. No matter what Powell said in his testimony about a stronger dollar, this is clearly not Fed policy. They need a weaker dollar to stir up inflation. Mnunchin would agree.I don’t think Kudlow plays into this.
4. A weaker dollar has also been the tactic to stop any runs lower in the markets.
5. Markets seem to want to move higher with each dollar move lower, so if the Fed says anything about a weaker dollar, or that’s what occurs post Fed, the market will move higher and take gold with it.
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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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