Are commodities bottoming out? Perhaps they might for a short trip higher here with the news from Saudi Arabia about price support for oil. It brought oil and natural gas higher today for a couple good trades, but nothing really gave us that wow factor. While oil and natural gas did bounce, gold started the day down, moved higher when the dollar retreated, and played that game most of the day and never got going. Still weak but not crashing. Same wtih silver.
I don’t think we get much play in it till after the holidays. We’ll see if we can get under $1,000 before the end of the year. This would equate to about $12 in silver or a little less. I have many clients and others patiently waiting for these prices to go arrive. If they come first part of next year, that’s ok too.
I have seen the stock market trade positive into holiday’s more often than not which is another reason I think gold has some good resistance this week.
Don’t see any news affecting gold good or bad. The markets and gold are now waiting for December Fed announcement in general. Will we finally get a rate increase? Most likely a token one. Fed has been great at talking up the markets for over a year and the stock market can’t handle a disappointment. The Fed needs the market to move higher to create wealth and have this wealth trickle down to others. But it’s not working, especially because the banks are hoarding it, taking the small guaranteed returns from the treasury. But something will give at some point. And when it does, gold and silver should be where you have some exposure.
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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