Current Thoughts for 6/6/2016

Today we had a little volatility in gold on Yellen’s speech. Can you guess from the following chart what time Yellen spoke?

Yellen spoke today

(the answer is just after 12:00 where the bar spiked to a new high and new low within minutes of each other.

For the life of me I don’t understand the Fed. I continually talk about how many are following the Fed and not the data and believe the Fed is on top of their game. What’s the difference between a room full of Fed board members and me? I don’t have to fool the public with rhetoric and “talk the talk” they have to. I can call it like I see it.

A client of mine sent me an email today where he read from another site this comment in reply to Janet Yellen’s speech today. It fits in with exactly what I am trying to make investors aware of, the data;

So the only problems Yellen sees are falling employment, slowing demand, falling productivity, rising inflation and a weak global economy. Heck, if that doesn’t instill confidence nothing will.

I do mock things from time to time, like today on another site when I read the following from a poster (you can’t make this stuff up);

“While the lord of the rings was based around a golden ring remember it was the silver pitcher and bowl that enabled Frotto to see into the future. The largest upside in the coming years will be from silver.”

Now you’ve heard it all, right? :-0

The dollar did end up at 94.03, right where it was when Yellen began speaking.  Gold really didn’t do anything after the speech and is waiting for the next catalyst to tell it what to do. I do think that catalyst will eventually come from Europe, Asia or China, not here after our lousy jobs numbers.

I am leaning only slightly bullish now for metals after the nice run up off of $1,200 for gold and $16 for silver while we play the wait and see game. Let the dollar be your micro guide, not the Fed.



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About Doug Eberhardt

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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