Gold and silver are in a weak trend lower at present as the dollar seems to have hit a short term bottom still hovering above the 95 level. It has been quite some time for gold not to move past the $1,300 mark and silver stay above $18 and now we are seeing silver lead gold lower. This still tells me that the deflation story is still alive and well. You also see it with platinum, palladium and you really see it with copper which is now at 3 month lows and seems be headed back to test the January low of 1.95.
I’ve been dropping hints that problems would come out of multiple countries boosting the dollar and our good friend Greece is back in the picture as CNBC has noted in this article; Failed Greek bailout forces more rescue talk from Europe
I’ve also said that Japan’s Abe Shinzo would have to do something sooner or later and Mish Shedlock does a good job of explaining how Abenomics is back in the spotlight. All Japan has is it’s exports that has kept the deflation game going there and exports are down.
While there will be more stories coming out of Europe, I’m waiting also for the shoe to drop in China. Worldwide deflation is coming.
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About Doug EberhardtDoug 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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