Many may not know that hedge fund managers have been the worst invest managers of late, not even coming close to the benchmark indexes. I don’t understand why investors want one put their money with someone who typically takes 20% off the top then on average underperformed the market.
With the pullback in China and India buying gold, and a bounce in the dollar over 93 (jury still out on one more push lower), all the gold bull has left from a micro perspective is the “threat” of NIRP (negative interest rate policy). But lower rates didn’t do much for gold since 2011 and neither did QE (quantitative easing).
What happens to gold next depends on what the dollar does and the recent COT data sets the tone for lower prices based on commercial shorts. I don’t want to short a higher high though so I will let the dollar dictate the play at present. Over 94 – 94.50 I would be worried if long. Under 93 – 92.50, one more move higher.
Happy Mother’s Day Mom!
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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