Current Thoughts for 2/10/2016

Gold started the day lower and moved up with every word Fed Chairwoman Janet Yellen spoke today. It’s because she was blowing smoke, The stock market waited and listened too for her to say something promising and by the end of the day lost it as well.

There will be no rate increase in March and I will say no rate increase till 2017. The Fed, as I have said, can’t lower rates too quickly as it would be a sign of weakness and the Fed can’t be perceived as weak (except by me). Nothing those at CNBC could say except backtrack their bullishness or concentrate as they always do on the positive and ignore the negative.

For those who do pay attention, you need to know nothing more than the fact that the national debt has surpassed $19 trillion and while it is not a problem today, you can bank on it being a problem sooner than later.

National Debt Clock

Zooming out we see the correlation of weak dollar eras and strong dollar eras. When this dollar strength ends, gold will fly. We’re just not there yet.

Gold Historical Chart

Dollar Historical Chart

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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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