Today was a topsy turvy day in gold and once again I want to say it seems like we are heading towards the $1,300 mark. I also notice the dollar is weaker giving gold more of a shot in the arm possibly in the weeks to come if the dollar continues lower. This will all be temporary in nature I assure you. I know it’s hard to sit and wait through a run up like this but silver hasn’t even broke the Feb. 11th high of almost a month ago. It sure might with a further spark up though.
We’re seeing price action take over most every other data I watch and this too shall cease to happen and the return or fall lower should be pretty fast and hard. I’m not ready to say buy DUST/JDST or puts in gold because I don’t like stepping in front of a train. But don’t think for a second that all is well in the economy to sustain the markets higher and gold/silver/miners higher. They are all in bull runs presently but will all fall hard soon enough.
You have to know there is a reason why I am getting my book out to the public with the awareness that I see moving forward. Most investors are not into gold and it is still an asset that you’ll see make wild swings. Same goes with silver. We are witnessing one of those swings now, causing shorts to cover. Then market makers drive it down in price and drive it down they will. This more than likely will be the last push lower and I will be finally writing my all in article. But know one thing, the market has not witnessed the kind of devastation I see coming. It should be much worse than 2007-2009 where gold fell 30%. The Fed has no clue what’s to come because they are on the wrong side of the fence looking to raise rates at one of the worst times they could possibly raise rates, similar to December. The market will see they won’t raise rates in March and no, they won’t raise rates all of 2016. They may actually implement more QE.
The move down in the VIX doesn’t show you the fear necessary for us to consider a bottom to be in. Gold is doing this on its own. It won’t last but for now ride it up. My advice has always been to dollar cost average into your allocation. Silver under $16 and gold under $1300 will be looked upon as good buys in the years to come, just as the DOW was a good buy in 2009. Investors may not have caught the bottom but they didn’t complain once they doubled their money.
I know it’s hard for some to hear that I am bullish overall but look for lower prices in the short term. We need the dollar over 100 and you’ll see what that will do to gold. By then, the 10 year will be closer to 1% and the DOW under 16,000.
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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