Current Thoughts for 11/26/2015

What I am Thankful For

One of the first gentlemen who taught me about gold was Richard Russell, who at 92 just passed away this last Saturday. He wrote his Dow Theory Letters to the very end. I am thankful that I was able to read his thoughts for almost 14 years. That encounter with his work was the first time that I started to question mainstream thinking about economics and investing in general, and why we as financial advisors never talked about gold as an investment.

Russell’s made a comment about the 3rd phase of a gold market where gold will go to “undreamed of heights.” I am on the same page as Richard, after this fake economy is exposed for what it is, and not just because I sell metals for a living. I provide data to back up anything I write and so far it’s allowed me to call the metals market as well as anyone who is considered an expert. I didn’t waver the last few times when prices moved higher. I dealt with the criticism of those who thought gold had bottomed. I stuck with my analysis and still do. Once we are under $1,000 an ounce in gold, which we are only about $70 away, my job in analyzing the markets will become more difficult. But I will leave you with this thought; if you bought gold today at $1,070 or caught the bottom just under $850 if it got that low, and now it is 5 years down the road and gold is $2500 an ounce or higher, does it matter where you bought? Can you tell me one other investment that has the propensity to go higher in price faster than a basket of commodities, especially of the precious kind once we bottom out? After finishing the investment chapter of my next book and spending time analyzing these markets, coupled with my almost 30 years in the financial services industry, I sure can’t.

My advice is to buy the phyiscal metal as low as cost to spot. This would be silver rounds and bars as well as gold bars if you want the cheapest. In times of real fear, which at some point I believe will come, you’ll want to own the physical but the premiums to convert to it may be much higher than they are today.

Richard Russell always said to put 50% of your wealth into physical metals. I think he is a little overboard there, but I also don’t think his heirs mind it.

You’ll be missed Mr. Russell. But you have many who thank you for your dedication.


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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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