We had a strong move up in silver today, past the $18 resistance we have been looking at for 2 months now. Silver closed off it’s highs but I still lean bullish until gold can take out that intraday high of $1,362 from Friday. That to me will signal the last leg up as long as the dollar continues to fall.
The dollar did fall today under 96 and still looks weak. Perhaps we have the dollar back in its inverse action to gold and silver which I have written about.
Watch for a continued fall in the dollar short term and an overall higher price for the metals. While metals won’t go up every day, just as the dollar won’t go down, this is still the trend I see. For me, the dollar is still my key to watch. Interestingly enough, volatility is back down again so fear is NOT driving the metals higher, just as the lack of fear hasn’t driven prices higher since February.
I’d like to point out a good conversation I jumped into again with another article on Seeking Alpha. I do this from time to time to test whether my theories are correct or if I am missing something. I’ll always admit to not knowing everything and I continue to challenge myself so that I don’t miss what others might be seeing. My goal is not to argue and say I’m right, but try and get a discussion to see where my point of view could use some improvement. I’ll always learn from the conversation if they are kind enough to indulge.
This can also give you a little insight into what I am writing about in my forthcoming book Illusions of Wealth. I must have hit a wall of those interested as it seems no one has signed up to receive notice of it’s release lately. I am thankful for those that have. My guess is once you read the book you will be either handing it off to your friends or buying them a copy.
Article title; PCE, GDP: Stagflation Confirms Down Cycle To 2017 Please read article first to know what the author says.
and can be found here: http://seekingalpha.com/article/3985206-pce-gdp-stagflation-confirms-cycle-2017
Doug Eberhardt , Contributor
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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