Gold moved up higher today and then settled off the highs. In fact $14 off the highs signalling a local top might have been reached. I said a few times I expect an overnight smackdown in metals to come sooner than later. Let’s see if I am right. Goldman Sachs would sure love it as they called for gold to hit $1,000 again and the guy making that call was basically mocked by CNBC for saying so as they were long. 4 years ago they didn’t even talk about ever going long gold. Nice to see some of them come around. But I think their timing is off and are a little late to the party.
The turnaround in the markets today was oil related. We had a push higher after the storage report, which wasn’t even bullish for oil as there was an increase in the barrels held, but the gasoline data came in better than expected and the markets used that as excuse to rally. Silly markets.
We were out of our ETFs at the prices below at a minimum and you can see the returns ranged from 7.81% to 24.41% in just 2 days. Are you getting these kind of returns? We are all the time with the ETF Leveraged Trading Service I run over at Seeking Alpha. Stop by for a 2 week free trial by going here; http://seekingalpha.com/author/doug-eberhardt/research
We also did well in DUST today, catching it at 4.01 and riding it to 4.50 minimum.
If gold does begin the final decline now, and the jury is still out on that, there will be a lot of disappointed people. While we did scalp DUST today, the nightly report still has us long JNUG and NUGT which both were green today.
One note on silver; it is acting more like the industrial metal than the monetary metal. It couldn’t even get past 16 on this run. Silver is feeling the deflationary pressures. It very well could lead gold lower.
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
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.